The Park Geun-hye administration is poised to put the brakes on the National Assembly’s fast-paced move to legislate bills related to “economic democratization.”
Deputy Prime Minister and Strategy and Finance Minister Hyun Oh-seok said on Tuesday that some of the bills submitted to the parliament contained provisions that would impose too many restrictions on corporate activities. “Even if our policy objectives are desirable, business activities must not be dampened in the process of pushing for those objectives,” Hyun said during a breakfast meeting with heads of the Fair Trade Commission, the National Tax Service and the Korea Customs Service.
Even if the top economic policymaker reaffirmed the government’s commitment to boosting economic justice and legalizing the underground economy, Hyun’s remarks raised questions about President Park Geun-hye’s will to carry out her election pledge of uprooting unfair business practices.
Hyun called the rare meeting after President Park said at a meeting of her senior secretaries a day earlier that policies and legislation aimed at promoting economic democracy must not be distorted in such a way as to put an excessive damper on businesses.
Given its latest moves, it’s natural that the government is suspected of trying to drag its feet regarding economic democratization because of pressure from the family-controlled conglomerates, which have been complaining about the aggravated investment climate amid the prolonged slump. But few will dispute the need to mitigate the power of chaebol, taking into account that the Korean economy is unable to grow further without tackling the underlying problem of economic polarization in our society.
The question is: how can we adjust the ongoing economic democratization drive to fit our realities? In this regard, Hyun rightfully opined during the meeting that economic democratization and economic recovery can and should be compatible.
The main opposition Democratic Party has submitted 34 bills intended to reinforce penalties against businesses, especially large ones, but some of these are accused of lacking reality and designed on the basis of populism. It is therefore imperative for the ruling and opposition parties to scrutinize the possible side effects from their hasty lawmaking process and control the pace. The government’s move to legalize the shadow economy also needs to be regulated properly so that normal corporate activities won’t be undermined.
It’s needless to say that both economic democratization and economic revitalization are important. Blind adherence to a cause and goals can’t be justified at a time when the economy is mired in a deep slump. What is needed now is for the government, politicians and businesses to pool wisdom together to kill two birds with one stone.