Business Community Welcomes New Government's Economic Policy Direction on Corporate Tax Cuts and Regulatory Reform (Comprehensive)

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho is announcing the new government's economic policy direction on the 16th at the Government Seoul Office in Jongno-gu, Seoul. From the left, Cho Kyu-hong, 1st Vice Minister of Health and Welfare, Lee Young, Minister of SMEs and Startups, Lee Jeong-sik, Minister of Employment and Labor, Deputy Prime Minister Choo, Won Hee-ryong, Minister of Land, Infrastructure and Transport, Jang Young-jin, 1st Vice Minister of Trade, Industry and Energy. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Oh Hyung-gil] Economic organizations welcomed the economic policy direction of the new Yoon Seok-yeol administration announced on the 16th, stating that it will revitalize the private economy, enhance corporate competitiveness, and improve the economic structure.

The Federation of Korean Industries (hereinafter FKI) said in a statement on the same day, "The government's operation of the economy centered on the private sector, enterprises, and markets based on a free market economy is seen as an appropriate policy direction to overcome the current economic crisis," emphasizing that "improving productivity and expanding investment through innovation in the private sector is the most efficient solution."

It added, "By introducing innovative regulatory relaxation systems such as the regulatory cost reduction system and the one-shot regulatory resolution system, we expect many regulations that have caused difficulties in corporate management to be abolished," and called for a significant improvement in corporate tax systems, including lowering corporate tax rates and abolishing investment and win-win cooperation promotion tax systems, as well as reforming working hours and wage systems to respond to the changed labor environment.

It continued, "The business community will do its best to expand investment and create quality jobs in response to the government's economic management direction."

The Korea Chamber of Commerce and Industry said, "It is an appropriate direction that the new government plans to focus on enhancing corporate vitality and strengthening the competitiveness of industries and companies through bold regulatory reforms under the principle of 'private sector-led' over the next five years," adding, "We hope that the five major structural reform tasks in public, labor, education, finance, and services will be steadily promoted to increase the dynamism of our economy and reverse the prolonged low-growth phase."

It also added, "We hope that the current risk situations such as high inflation, high interest rates, and high exchange rates will be managed stably so that the reform tasks presented by the new government can be implemented effectively and without setbacks."

The Korea Employers Federation (KEF) emphasized, "The 'New Government Economic Policy Direction' will revitalize the private economy and improve the economic structure through deregulation and fostering advanced industries," and urged, "We hope the government will strongly pursue policy tasks such as regulatory reform, labor reform, and tax system improvement with speed to overcome the current complex economic crisis early and enhance the economy's growth potential."

It also stated, "Our business community will continuously communicate and cooperate with the government so that the atmosphere of active investment and job creation by companies can spread throughout the industry in response to these policy changes."

The Korea International Trade Association (KITA) also said in a statement on the same day, "The trade sector greatly welcomes this economic policy direction based on a free market economy and the establishment of a fair market order," emphasizing, "We highly appreciate the government's will to restore dynamism to the private-sector-centered market through bold regulatory improvements and strengthen the foundation so that small and venture companies can grow into a strong pillar of the economy."

It added, "By solidifying the technological gap in advanced industries, which are the core of our economic security, revitalizing exports of the service industry, and strategically fostering new industries, it is expected to expand the future growth base of Korean trade and inject vitality into our trade sector."

A KITA official said, "Through the economic policy direction, our association will also do its best with the new government to help South Korea leap into one of the top five trading powers."

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