Choo Kyung-ho "Corporate Tax and Business Succession Tax Reform"... Six Economic Group Leaders "Regulatory Reform and Lee Jae-yong Pardon" (Comprehensive)

The General Overview is 'Regulatory Reform,' with Detailed Demands Pouring in for Taxation, Labor, and Corporate Amnesty

Leaders of six major economic organizations, including Deputy Prime Minister for Economy Choo Kyung-ho and the Korea Chamber of Commerce and Industry, pose for a commemorative photo at a meeting held at 3 p.m. on the 2nd. From the left: Lee Kwan-seop, Vice Chairman of the Korea International Trade Association; Kim Ki-moon, President of the Korea Federation of SMEs; Sohn Kyung-shik, Chairman of the Korea Employers Federation; Deputy Prime Minister Choo; Chey Tae-won, Chairman of the Korea Chamber of Commerce and Industry; Huh Chang-soo, Chairman of the Federation of Korean Industries; and Choi Jin-sik, President of the Korea Association of Mid-sized Companies. (Photo by Korea Chamber of Commerce and Industry)

[Asia Economy Reporter Moon Chaeseok] On the afternoon of the 2nd, Deputy Prime Minister for Economy and Minister of Strategy and Finance Choo Kyung-ho met with the heads of six economic organizations and said, "The government will actively support corporate-led investment and job creation through bold regulatory reforms across ministries and tax reforms related to corporate tax, business inheritance, and corporate succession." The heads of economic organizations unanimously requested tax and regulatory reforms. They also asked for consideration of pardons for business leaders such as Samsung Electronics Vice Chairman Lee Jae-yong and Lotte Chairman Shin Dong-bin.

In his opening remarks at the meeting with the heads of economic organizations held at 3 p.m. at the Korea Chamber of Commerce and Industry building in Jung-gu, Seoul, Deputy Prime Minister Choo said, "The new government plans to operate economic policies based on the principle of a 'dynamic economy driven by the private sector and supported by the government,' with growth, investment, and job creation led by the private sector and businesses." He also expressed gratitude for the recent large-scale investment plans announced by major domestic companies. Eleven major domestic groups have announced plans to invest a total of 1,060.6 trillion won over the next five years following the launch of the Yoon Suk-yeol administration. Attending the meeting were Deputy Prime Minister Choo, Korea Chamber of Commerce and Industry Chairman Chey Tae-won, Korea Employers Federation Chairman Sohn Kyung-shik, Federation of Korean Industries Chairman Huh Chang-soo, Korea Federation of SMEs Chairman Kim Ki-moon, Korea Association of Mid-sized Enterprises Chairman Choi Jin-sik, and Korea International Trade Association Executive Vice Chairman Lee Kwan-seop.

Deputy Prime Minister Choo cited price stabilization as the top immediate priority and requested cooperation from the business community. He said, "I earnestly ask the business community to consider that competitive price and wage increases in each sector could rather trigger a vicious cycle of inflation, and to absorb price increase factors as much as possible through productivity improvements within their capacity."

Chairman Chey Tae-won of the Korea Chamber of Commerce and Industry (far right) delivering a greeting at the meeting between Deputy Prime Minister for Economy Choo Kyung-ho (center) and the heads of six major economic organizations held on the afternoon of the 2nd. (Photo by Korea Chamber of Commerce and Industry)

The heads of the six economic organizations unanimously agreed that 'regulatory reform' is an urgent task. Although the detailed topics such as tax, labor, and pardons for business leaders differed, the clear message was 'regulatory easing.' Chey Tae-won, chairman of the Korea Chamber of Commerce and Industry, said, "The situation is difficult, but last week the business community announced the 'New Entrepreneurial Spirit' and established aggressive investment plans to find new growth opportunities. If support is provided in areas such as regulation and taxation, investment incentives will definitely increase, and economic vitality will be enhanced." Huh Chang-soo, chairman of the Federation of Korean Industries, also said, "Ultimately, the most efficient and least side-effect economic policy is to create a business-friendly environment because expanding the economy's supply capacity stabilizes prices and increases production."

Some heads of economic organizations proposed detailed improvements such as pardons for business leaders, labor reform, regulatory reform, corporate tax cuts, and application of import tariff exemptions. Sohn Kyung-shik, chairman of the Korea Employers Federation, drew attention by saying, "I hope that pardons for business leaders like Samsung Electronics Vice Chairman Lee Jae-yong and Lotte Chairman Shin Dong-bin, who face inconveniences in corporate activities such as restrictions on overseas travel, will be actively considered so that our businesspeople can be more active in the global market." He added, "Ultimately, to increase (economic) growth rates and strengthen national competitiveness, bold policies such as labor reform and tax improvements must create a 'business-friendly environment' so that companies can actively invest and create jobs."

Kim Ki-moon, chairman of the Korea Federation of SMEs, requested easing of the '52-hour workweek system and the Serious Accident Punishment Act' and 'employment of foreign workers.' Kim said, "Please improve various regulations including labor regulations such as the 52-hour workweek and Serious Accident Punishment Act, complex quasi-tax wage systems, and environmental regulations." Choi Jin-sik, chairman of the Korea Association of Mid-sized Enterprises, said, "Please align all regulations and tax systems with global standards and the average of 10 OECD countries. It is not just about corporate tax, inheritance tax, and gift tax issues, but there are many difficult conditions for doing business, and I will organize these specifically and deliver them to Prime Minister Han Duck-soo." Lee Kwan-seop, executive vice chairman of the Korea International Trade Association, said, "Along with the public discussion on corporate tax cuts, I hope the application of import tariff exemptions will be expanded further. This should help reduce corporate production costs."

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