Businesses should lead the economy, Finance Minister Choo says

Economy

Published: 02 Jun. 2022, 17:56 Updated: 02 Jun. 2022, 19:00

Businesses should lead the economy, Finance Minister Choo says

From left, Lee Kwan-sup, Korea International Trade Association vice chairman, Kim Ki-mun, Korea Federation of SMEs chairman, Sohn Kyung-shik, Korea Enterprise Federation chairman, Choo Kyung-ho, Finance Minister, Chey Tae-won, Korea Chamber of Commerce and Industry chairman, Huh Chang-soo, Federation of Korean Industries chairman and Choi Jin-shik, Federation of Middle Market Enterprise of Korea chairman, pose before a meeting at the Korea Chamber of Commerce and Industry’s office in Seoul on Thursday. [JOINT PRESS CORPS]

Finance Minister Choo Kyung-ho told businesses that they should lead the economy, and offered a number of breaks and incentives to keep them motivated.

"The government is planning a bold regulatory rollback through tax reforms, including corporate tax and inheritance tax cuts," Choo said in a meeting with business lobbies on Thursday.

The finance minister said the reforms are part of the Yoon Suk-yeol government's plan to have the private sector lead the economy rather than the government.

"Our economy is in a state of emergency due to complications of internal and external risks, including the Ukraine crisis, the tightening of monetary policies in major countries and increasing inflation pressure," Choo said.

Noting that inflation is likely to remain 5 percent due to rising oil and commodity prices, he stressed that the government's top priority at the moment is helping the public.

The finance minister stressed the importance of the private sector helping the people of Korea.

"We are implementing policies that will lower the production costs, such as waiving value-added taxes," Choo said. "We ask that businesses contribute as much as they can to containing prices, such as by improving productivity."

He requested chaebol and smaller companies provide support proportional to their size and capacity.

"I ask that everyone cooperate in solving the problem of a slowing economy and rising prices," Choo said.

Late last month in meeting with reporters, the finance minister said intentionally forcing inflation down could have negative side effects. He said instead the government has come up with plans to contain prices.

It announced 10 initiatives, which include waiving tariffs on several key food products.

Those attending included: Chey Tae-won, SK Group chairman and the Korea Chamber of Commerce and Industry chairman; Sohn Kyung-shik, Korea Enterprise Federation chairman; Huh Chang-soo, Federation of Korean Industries chairman; Kim Ki-mun, Korea Federation of SMEs chairman; Choi Jin-shik, Federation of Middle Market Enterprise of Korea chairman; and Lee Kwan-sup, Korea International Trade Association vice chairman.

BY LEE HO-JEONG [lee.hojeong@joongang.co.kr]