6 out of 10 Companies Expect "Yoon Government to Improve Business Environment"

Industrial Union Forum, Survey for Member Companies

President-elect Yoon Suk-yeol is meeting with Michael Reiffenstuel, the Ambassador of Germany to Korea, on the 6th at the Office of the 20th Presidential Transition Committee in Tongui-dong, Jongno-gu, Seoul. Photo by Transition Committee Press Corps

[Asia Economy Reporter Choi Dae-yeol] A survey revealed that more than half of companies expect the business management environment to improve under the new government to be formed after President-elect Yoon Seok-yeol’s inauguration.

According to the policy recommendation survey results released on the 7th by the Korea Industrial Federation Forum, 58.7% of the responding companies (20.8% expecting significant improvement and 38.7% expecting slight improvement) anticipated an improvement. Conversely, 28.3% of companies expected a deterioration (11.3% significant deterioration and 17% slight deterioration). About 12.3% expected no change.

The reason for expecting a worsening business environment was the high likelihood of intensified conflicts between the ruling and opposition parties. They believed that if the regime changes and a minority ruling party with a majority opposition continues, smooth government administration could become difficult due to the political structure. Additionally, some companies anticipated worsening conditions due to international economic recession, conflicts between the government and the National Assembly, or labor-management disputes.

On the other hand, many companies expecting an improvement cited anticipated relaxation of regulatory policies as the reason. Some also expected improvements in labor policies and increased corporate support.

The top priority policy task for the new government was labor policy, including flexible working hours, at 34%. This was followed by corporate support policies at 24%, corporate-related legal reforms at 20%, deregulation at 15%, and environmental policies at 5%. Among labor policies, there was significant interest not only in flexible working hours but also in the minimum wage system, wage structure, and dispatch law.

Regarding the current government’s business management environment, 50% of respondents expressed dissatisfaction. The most cited reasons for dissatisfaction were labor policies such as the minimum wage and the 52-hour workweek system. There were also complaints about regulatory policies, safety management policies, and corporate support policies.

This survey was conducted online by the Industrial Federation Forum targeting companies affiliated with 16 industry associations that are members of the forum. A total of 107 companies responded. Separately, the 16 industry associations collected opinions from their member companies and submitted them to the forum. The survey and opinion collection were conducted from the end of last month to early this month.

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