Yoon: "Killer Regulations Blocking Corporate Investment Must Be Thoroughly Removed" (Comprehensive)

President Yoon Directly Reviews 'Second Half Economic Policy Direction'
"Killer Regulations Must Be Swiftly Removed to Promote Private Investment"
Firm Response to Political and Illegal Strikes... Expectations Must Be Cleanly Set Aside

President Yoon Suk-yeol on the 4th instructed to "vigorously remove decisive regulations, killer regulations that block businesspeople's investment decisions." The intention is to eliminate factors causing contraction in private and corporate investments and focus on 'revitalizing economic activity' in the second half of the year.

On the morning of the same day, President Yoon presided over the '18th Emergency Economic and Livelihood Meeting' at the Blue House State Guest House to discuss the '2023 Second Half Economic Policy Direction,' stating, "The second half of this year is an important turning point to demonstrate the resilience of the Korean economy, which has overcome crises and grown one step further."

In particular, in his closing remarks, President Yoon mentioned 'killer regulations,' saying, "Even if there are only a few, we must find killer regulations and swiftly remove them through enforcement decrees or legal amendments to prepare for the future and promote private investment, which is a growth engine." He added, "It is impossible to have no regulations at all, and companies can make necessary investments even if they are inconvenienced by regulations," emphasizing, "But we must eliminate very decisive killer regulations that completely prevent investment."

On the same day, President Yoon also urged the swift passage of essential economic livelihood bills in the National Assembly, saying, "Bills for livelihood stabilization are being held up in the National Assembly, causing frustration among the people." He specifically pointed to the 'National Finance Act' and requested active support from the government and ruling party. These are all issues with clear differences between the ruling and opposition parties, and even the 'Partial Amendment to the National Finance Act,' which aims to legislate fiscal rules, has been discussed in the National Assembly's Planning and Finance Committee's Economic and Fiscal Subcommittee but does not seem likely to pass easily. The government and ruling party's position is to legally cap quantities such as national debt to prevent the country's finances from deteriorating beyond a certain level, while the Democratic Party argues that it is necessary to be cautious about legally restricting government spending during a prolonged low-growth phase.

President Yoon praised the government's economic management in the first half of the year, saying, "We have stably managed inflation, bringing it down from over 6% to the 2% range, and the trade balance, which had been continuously in deficit, turned to surplus last month." This refers to the consumer price inflation rate, which peaked at 6.3% in July last year and has been steadily declining since, and the trade deficit streak that lasted for 15 consecutive months since March last year finally ended last month.

On the same day, the government announced plans to prioritize 'export expansion' as the top economic policy task in line with this policy operation stance. The core is to frequently check follow-up measures on export, order, and investment attraction results through sales diplomacy and actively correct systems or regulations that do not meet global standards.

President Yoon also reiterated his repeated emphasis on breaking cartels. The government stated that it will change cartel structures rather than allowing vested interests to gain profits and rights through fair and just compensation systems. At the government level, plans were disclosed to review from a zero base the undue gains of vested interests, such as oligopolistic structures in the finance and telecommunications industries and the government research and development fund sharing that hinders scientific and technological innovation. A government official said, "We will work harder to ensure that the fruits of growth spread throughout the lives of our people and warmth fills every corner," adding, "While early expanding regional infrastructure, we will resolve difficulties in the livelihood field such as reverse jeonse, jeonse fraud, and illegal private loans, and respond strictly to illegal acts."

The government also forecast a consistent stance on various strikes. President Yoon said, "We will never yield to the threats of those who take the people and the national economy hostage by engaging in political strikes and illegal demonstrations and will respond firmly," emphasizing, "It is better to completely give up the expectation that something can be gained through illegal demonstrations and strikes." This appears to be aimed at the Korean Confederation of Trade Unions, which has planned a two-week general strike from the 3rd to the 15th, demanding the resignation of the Yoon Suk-yeol administration.

Meanwhile, the meeting was convened to conduct a mid-term review of the '2023 Economic Policy Direction' established by the government at the end of last year and to adjust the economic management direction for the second half of the year. Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho explained recent economic conditions and future prospects, including the economy, financial and real estate markets, inflation, and employment, and reported on three major focus tasks: ▲ revitalizing economic activity ▲ stabilizing the livelihood economy ▲ improving economic fundamentals.

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