'Obstacles to Corporate Growth' Identified by Elected Officials... Top Priority for Removal (Comprehensive)

New Government Announces Corporate Regulation Easing, Pro-Business Moves
"Punitive Serious Accident Act... Companies Have Many Concerns"

President-elect Yoon Suk-yeol is attending the transition committee secretariat meeting held at the Presidential Transition Committee in Tongui-dong, Jongno-gu, Seoul on the 22nd, delivering opening remarks. Photo by Dongju Yoon doso7@

[Asia Economy Reporter Oh Hyung-gil] "The government's role is to remove institutional obstacles so that companies can make decisions more freely, invest freely, and grow." (President-elect Yoon Seok-yeol)

As President-elect Yoon pledged to eliminate obstacles to corporate growth during his first meeting with the heads of six economic organizations, attention is focused on the first target where hurdles will be lowered. With the new government signaling a pro-market and pro-business stance, it is expected that representative and symbolic regulations will be the top priority for revision. In the market, the Serious Accident Punishment Act, which was mentioned unanimously as a common issue for both large and small businesses during the meeting, is being discussed.

According to the business community on the 22nd, President-elect Yoon said at a meeting with six economic organization heads at the Presidential Transition Committee office in Jongno-gu, Seoul, "Although changes are already underway, the economy must now transform from government-led to private sector-led," adding, "I have strong faith in the free market economy."

Attendees included Choi Tae-won, Chairman of the Korea Chamber of Commerce and Industry; Sohn Kyung-shik, Chairman of the Korea Employers Federation; Huh Chang-soo, Chairman of the Federation of Korean Industries; Kim Ki-moon, Chairman of the Korea Federation of SMEs; Koo Ja-yeol, Chairman of the Korea International Trade Association; and Choi Jin-sik, Chairman of the Korea Federation of Medium-sized Enterprises. This was the first meeting with the business community since the election.

President-elect Yoon reiterated, "The government's role is to remove factors that hinder companies from operating freely," signaling a pro-business approach. This reflects his intention to lower various regulatory hurdles surrounding companies. Accordingly, attention is focused on the first issue to be addressed among the proposals made by the heads of economic organizations at this meeting.

The business community expects that the Serious Accident Punishment Act, which both large and small businesses commonly point out as problematic, will be prioritized. Since its enforcement on January 27, the act has faced criticism from the industry for its unclear provisions and its focus on punishment rather than prevention.

Kim Ki-moon, Chairman of the Korea Federation of SMEs, and Sohn Kyung-shik, Chairman of the Korea Employers Federation, attended a luncheon meeting with President-elect Yoon Seok-yeol and leaders of six economic organizations at the Presidential Transition Committee in Tongui-dong, Jongno-gu, Seoul on the 21st. They are seen conversing before the start of the meeting. Photo by Yoon Dong-ju doso7@

"Businesspeople Treated as Potential Criminals... Serious Accident Punishment Act Needs Revision"

Chairman Sohn Kyung-shik said, "There is much concern among companies due to the punishment-centered Serious Accident Punishment Act," adding, "The act should be revised to reflect reality, and instead, accident prevention activities should be significantly strengthened."

Chairman Huh Chang-soo also urged, "While safety is important, the Serious Accident Punishment Act treats businesspeople as potential criminals and needs to be revised to align with global standards."

Chairman Kim Ki-moon stated, "The act applies minimally to large companies but mainly affects small businesses subcontracted by them," calling for legal improvements. According to surveys conducted by the Korea Employers Federation and the Korea Federation of SMEs, the Serious Accident Punishment Act was identified as the most burdensome regulation for companies this year. President-elect Yoon has also repeatedly emphasized the need to revise the act during his candidacy.

In January, he stressed, "We need to focus on prevention and refine related enforcement decrees so that businesspeople do not lose motivation, ensuring rational implementation and reasonable consideration in practical application."

Labor-related law revisions, such as flexibilization of the 52-hour workweek system and improvements to the minimum wage system, are also likely to be prioritized. The 52-hour workweek system is expected to see expanded exceptions, especially for startups. President-elect Yoon stated in a policy Q&A with the startup industry, "We will expand labor hour flexibility by including newly established startups in the special extended work hours or special extended work categories."

Regarding the minimum wage system, he pointed out, "While it would be good to raise wages, if small businesses that cannot afford to pay are forced to raise wages to the same level as large companies, workers willing to work for slightly less than the minimum wage will lose their jobs." It is expected that the government will reflect industry demands in the system by slowing the pace of minimum wage increases and differentiating minimum wages by industry and workplace size.

Meanwhile, as a campaign pledge, President-elect Yoon promised to abolish about 80 outdated regulations immediately upon the new government's launch and to suspend or repeal regulations that arise as small businesses grow into medium-sized enterprises and medium-sized enterprises grow into large companies.

This content was produced with the assistance of AI translation services.