The Party, Government, and Blue House Discuss Handling Social Economy Revitalization Bills in February Extraordinary National Assembly Session

[Asia Economy Reporter Jeon Jinyoung] On the 28th, the Democratic Party of Korea, the government, and the Blue House held a party-government-Blue House meeting to promote legislation and revitalize the social economy, discussing measures to handle related legislation during the February extraordinary session of the National Assembly. Currently, about 30 bills, including the Social Economy Basic Act, Social Value Basic Act, Microfinance Act, and Credit Union Act, are pending in the National Assembly as social economy revitalization bills.

[Image source=Yonhap News]

원본보기 아이콘

Lee Nak-yeon, leader of the Democratic Party, said at the afternoon meeting, “As the novel coronavirus infection (COVID-19) prolongs, the suffering of many people is increasing. As a result, social issues such as youth unemployment and polarization are worsening,” adding, “It is a time when wise solutions are needed. I believe that revitalizing the social economy can be that alternative.”

Lee particularly focused on corporate ESG (Environmental, Social, and Governance) management. He said, “It is a system where companies invest to improve the environment, society, or governance and reflect the results in investments or provide incentives,” and added, “As ESG spreads globally, it is helping to revitalize the social economy.”

He also hinted at its relation to the recently emphasized profit-sharing system. Lee said, “One way to create a profit-sharing system is to strengthen incentives, but a promising method for a smooth landing can be found in ESG,” emphasizing, “In forming the profit-sharing system and social solidarity fund we aim for, ESG evaluations can be a very attractive incentive by deciding whether pension funds, including the National Pension Service, invest or by reflecting it in public procurement.”

He then stated that such bills would be discussed within the February extraordinary session of the National Assembly. Lee added, “Investment by pension funds does not require legal amendments, but reflecting it in public procurement requires amendments to the Procurement Act,” and said, “I hope these matters will be discussed in the February extraordinary session, and we will strive to smoothly process the revitalization bills, including the Social Economy Basic Act, currently pending in the National Assembly.”

Kim Yong-beom, 1st Vice Minister of Strategy and Finance, also said at the meeting, “Concerns about K-shaped polarization caused by COVID-19 have increased,” and added, “Efforts of solidarity and cooperation are necessary to overcome crises and shocks. Especially, legislation related to the social economy is important.” Kim urged, “Through legislation, we must better reflect field demands in policies and improve fiscal efficiency.”

Lee Ho-seung, Senior Secretary for Economic Affairs at the Blue House, emphasized, “We must now overcome the attitude of mistranslating social economy and values as socialist economy.” Lee said, “The COVID-19 crisis awakened forgotten values and showed the direction of future socioeconomics,” adding, “Examples include ESG management, conscious consumption and value consumption, solidarity and cooperation. We will do our best efforts so that the social economy can establish itself as a new approach to solving problems.”

© The Asia Business Daily(www.asiae.co.kr). All rights reserved.