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Korea Inc. calls on new president to foster business-friendly environment in face of crisis

Published: 04 Jun. 2025, 17:30 Updated: 04 Jun. 2025, 19:29

Newly elected President Lee Jae-myung waves to his supporters as he arrives at the Democratic Party headquarters in Yeouido, western Seoul, in the early hours of June 4. [JOINT PRESS CORPS]

Major business organizations issued coordinated statements urging President Lee Jae-myung to prioritize overcoming the economic crisis, fostering a business-friendly environment and minimizing external trade risks.

“Amid pressing national challenges such as low growth, declining birthrates and regional decline, as well as rapid global changes including the rise of protectionism and the AI technological revolution, we hope the president demonstrates leadership that unifies the country’s capabilities to drive national development and economic resurgence,” said the Korea Chamber of Commerce and Industry.

“We call on the government to create an environment conducive to business so that innovation and entrepreneurial risk-taking can spread,” said the Federation of Korean Industries. “Our economy faces a complex set of challenges, from a worsening global trade climate to a domestic consumption slump. The key to overcoming these difficulties lies in stabilizing livelihoods and strengthening industrial competitiveness to restore economic vitality.”

The Korea Enterprises Federation echoed the call, saying that “a thriving business sector is essential for a strong economy and job creation.” The federation urged the new administration to “boldly reform regulations that hinder corporate growth, build a flexible labor market, and establish stable labor-management relations to foster a favorable business environment.”

“This is a critical moment for the Korean economy to find new pathways amid a shifting global economic order marked by supply chain reorganization, trade wars and the AI revolution.”

President Lee Jae-myung, left, and American Chamber of Commerce in Korea Chairman and CEO James Kim sign after signing a deal at the on 2018. [AMCHAM]

Calls also emerged for a swift response to the changing global trade landscape.

“We urge the government to fully mobilize its trade diplomacy capabilities and pursue a pragmatic trade negotiation strategy to minimize external risks for Korean companies,” said the Korea International Trade Association. “We expect new engines of growth to be identified and unnecessary regulations eliminated so that the broader economy can maintain momentum.”

“To reignite Korea’s faltering growth engines, we must ensure that not only large corporations and select regions grow, but also that small- and medium-sized enterprises [SMEs], startups, microbusinesses, workers, and noncapital areas grow together,” said the Korea Federation of SMEs. “The government must particularly strengthen support for SMEs in leading strategic industries of the future and help traditional manufacturing SMEs secure competitiveness through innovation and restructuring based on AI and carbon neutrality.”

“The top priority for the new administration should be to revive weakened export competitiveness through diplomacy rooted firmly in national interest, particularly in response to the shifting global trade order led by Trump-era reciprocal tariffs,” said the federation. “At the same time, it must deploy all available policy tools to restore the crumbling domestic market.”

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY CHOI SU-NEUL [[email protected]]