Business lobbies call for Yoon to roll back Moon policies

Industry

Published: 10 Mar. 2022, 18:32 Updated: 10 Mar. 2022, 20:13

Business lobbies call for Yoon to roll back Moon policies

From left: Chey Tae-won, president of the Korea Chamber of Commerce and Industry (KCCI); Huh Chang-soo, chairman of the Federation of Korean Industries (FKI); Sohn Kyung-shik, chairman of the Korea Enterprises Federation (KEF); and Christopher Koo, chairman of the Korea International Trade Association (KITA). [EACH ASSOCIATION]

Business lobbies want the new president to cut regulation and allow companies to operate more flexibly.

In letters to president-elect Yoon Suk-yeol, they offered congratulations following the closest election in Korean history and sent their to-do list to the first conservative in the Blue House in five years.

"We hope that the president-elect establishes an environment that's good for business," the Korea Chamber of Commerce and Industry wrote in its letter.

"We suggest a boost in the potential growth rate through growth led by the private sector based on the efficiency of the free market, loose regulations and reformed labor and education sectors."

The Moon Jae-in administration has been blamed for keeping companies on a tight leash over the past five years, and businesses say this has hindered growth.

The Severe Accidents Punishment Act, passed under the Moon administration, holds the CEO of a company responsible if an employee is injured at the worksite. Previous safety laws held the corporation or the field manager accountable for accidents, seldom the individual CEO.

The 3-percent rule added to the Commercial Act during the Moon administration limits the voting rights of the largest shareholders in a company when an auditor is being selected.

During his presidential campaign, Yoon vowed to relax restrictions for businesses, both small and big, and to ensure a market driven by private companies instead of the state. His promises included slowing minimum wage increase rate and allowing more working hours, in contrast to Moon's policies that raised the minimum wage and reduced working hours.

"Our economy is suffering from decreasing domestic demand, a low birthrate and an ageing population," said the Federation of Korean Industries.

"We especially look forward to a more flexible labor market and the end of regulations so that companies can invest freely and create job opportunities and bring about a growth paradigm led by the private sector."

The Korea Enterprises Federation (KEF) called for "an environment that ensures free economic activities where entrepreneurship is respected."

"We emphasize that the new government makes an 'environment fit for businesses' by boldly scrapping regulations and improving labor-management relations," the KEF said.

President-elect Yoon Suk-yeol gives a speech at the National Assembly Library in Yeouido, western Seoul, on Thursday. [JOINT PRESS CORPS]

A request specifically on carbon neutrality was put forward by the Korea International Trade Association (KITA), which pleaded for the new government to set realistic goals when it comes to environmental regulations.

The Moon administration had pushed to cut greenhouse gas emissions by 40 percent by 2030 and to reach carbon neutrality by 2050, and these targets faced severe criticism from both business and environmental groups.

Industry groups in particular expressed concern that the new requirements would hurt the competitiveness of the country's major industries, which heavily rely on manufacturing, and excessively weigh on the economy.

"We suggest that the new government closely communicates with industry for a realistically-achievable carbon neutrality," KITA said.

It added that Korea should protect its domestic businesses at a time when countries turn to protectionist trade measures, especially due to the ongoing pandemic and growing military tensions in Ukraine.

"Flexible action must also be taken against the change in the global order, through balanced and strategic economic security," the association said.

Tech companies also called for less regulation.

"We hope that the new government improves the current environment," the Korea Internet Corporations Association said.

The Korea Startup Forum asked for the government to allow the private sector to lead and the state to aid when required by the market.

"The world economy is led by start-ups," the Korea Startup Forum said. "Our economy also depends on becoming a digital economy leader, which again relies on the innovation of the start-up ecosystem. The government must shift from preventive regulations to intervening after a problem has occurred."

BY YOON SO-YEON [yoon.soyeon@joongang.co.kr]