KCCI calls for removing red tape

By Lee Hyo-sik

The Korea Chamber of Commerce and Industry (KCCI) has urged policymakers and lawmakers to ease regulations, promote entrepreneurship and build a venture eco-system in order to jumpstart the sagging domestic economy.

KCCI Chairman Park Yong-maan and heads of 70 regional chambers of commerce and industry across the country issued 100 policy suggestions Thursday, calling on the government and the National Assembly to create a business-friendly environment if they want companies to hire more workers and expand investments.

The nation’s largest business association’s move came five days before the Ministry of Strategy and Finance is scheduled to unveil President Park Geun-hye’s three-year plan for ``economic innovation’’ on Feb. 25.

The KCCI said the government should closely work with the business community if it wants to successfully implement the scheme.

``In the past, the government set up economic plans and told companies what to do. But this doesn’t work anymore,’’ said KCCI Executive Vice Chairman Lee Dong-geun said. ``Now, the government and businesses are equal partners and should work together to achieve intended goals. The KCCI and its member companies will do everything to help realize President Park’s three-year plan because it is a right step toward revitalizing the Korean economy and boosting the per-capital gross domestic product (GDP) to over $40,000.’’

The KCCI suggested that the government break down entry barriers to various services sectors, including law, education and medicine, in order to generate more high-paying jobs.

``We cannot create jobs by reducing working hours or mandating work-sharing. Korea needs to generate a number of decent jobs in services sectors by introducing the concept of competition,’’ the association said. ``Lawyers, doctors and many other professionals have refused to open up their businesses to outside competition because they want to protect their vested rights. As a result, Korea’s services sectors lag far behind those of advanced countries. It is time to abolish barriers in the legal, education and other services industries.’’

The KCCI then called on the government to ease the labor market rigidity by allowing companies to hire substitute workers at the time of a strike and preventing labor unions from occupying workplaces.

In order to encourage companies to hire workers and invest, policymakers should set a limit on the number of regulatory rules and establish an assessment body to evaluate whether regulations are necessary or not, it said.

The association also said to promote entrepreneurship, the government should create a venture ecosystem where entrepreneurs who previously failed can get a second chance and have an easier access to capital.