Lee Min-hyung joined The Korea Times in 2014 and has worked as a journalist mainly in Korea’s finance, tech and automotive industry. He specializes in content creation, breaking news and in-depth analysis currently on transportation and mobility. You can reach him via mhlee@koreatimes.co.kr.
Business leaders call for deregulation, labor reform, governing by law
President Yoon Suk Yeol delivers a speech during a New Year greeting event with business leaders at the Korea Federation of SMEs in Seoul, Tuesday. Yonhap
By Lee Min-hyung
Business leaders called on the government to take bolder steps in 2024 to remove regulations, overhaul the labor market and establish the rule of law amid growing geopolitical risks and other unfavorable conditions, according to major business lobbies, Tuesday.
Leaders of the nation’s four most influential conglomerates — Samsung Electronics Executive Chairman Lee Jae-yong, SK Group Chairman Chey Tae-won, Hyundai Motor Group Executive Chair Chung Euisun and LG Group Chairman Koo Kwang-mo — also urged the government to provide a set of more proactive policy supports to facilitate economic recovery and tackle lingering economic and social uncertainties.
In response, President Yoon Suk Yeol echoed their sentiments at a New Year greeting event with 400 business leaders at the Korea Federation of SMEs in Seoul.
“The government will spare no efforts in activating the economy, and toward that end, we will facilitate corporate investment and drive growth of state-of-the-art industries by pushing ahead with bold and speedy support for them,” Yoon said.
He spoke highly of business leaders’ efforts in helping revive exports and maintaining a decent employment rate.
Leaders of the top conglomerates also underscored the importance of elevating partnerships with the government, so as for the economy to make a meaningful rebound this year after suffering two consecutive years of trade deficits.
President Yoon Suk Yeol cuts a rice cake during a New Year meeting with business leaders in Seoul, Tuesday. Also seen in the photo are LG Group Chairman Koo Kwang-mo, left, Federation of Korean Industries Chairman Ryu Jin, third from left, Samsung Electronics Executive Chairman Lee Jae-yong, fourth from left, Korea Federation of SMEs Chairman Kim Ki-moon, fifth from left, SK Group Chairman Chey Tae-won, fifth from right, Hyundai Motor Executive Chair Chung Euisun, fourth from right, Korea Enterprises Federation Chairman Sohn Kyung-shik, third from right, and Lotte Group Chairman Shin Dong-bin, right. Yonhap
Chey, who also chairs the Korea Chamber of Commerce and Industry (KCCI), expressed hopes for the public and private sectors to tighten their alliance.
"We face multiple complex social and economic issues," he said. "On the business side, we will remain aggressive in finding solutions for the issues. We also urge the government to take proactive steps. All the interested parties should exchange ideas to seek a breakthrough."
Collaboration between the government and private sector is crucial for both sides to find clearer solutions and speed up the pace of economic recovery, he said.
An official from the business lobby pledged to deepen communication with the government for a faster economic rebound.
“We fully sympathize with the government’s willingness to alleviate outdated regulations stifling innovation,” the official said.
President Yoon also shared the government's plan to adopt a wider range of deregulations across the financial sector by pushing for the abolishment of a financial investment gains tax.
“The government will carry forward with the repeal of the tax, while at the same time reviewing revision of commercial acts for the interest of minority shareholders,” Yoon said. Under the controversial taxation system, those who earn annual revenues of more than 50 million won ($38,400) via stock trading are subject to paying 20 percent in taxes.
“The stock market is a ladder of opportunity for the public to accumulate their assets,” Yoon said. “We should enhance the dynamics of society and loosen any hierarchical order by vitalizing financial investment.”
Other conglomerate leaders who attended the New Year greeting included Hyundai Motor Group Executive Chair Chung Euisun, LG Group Chairman Koo Kwang-mo and Lotte Group Chairman Shin Dong-bin.
Ranking government officials — among them new Finance Minister Choi Sang-mok, Trade Minister Bang Moon-kyu and Financial Services Commission Chairman Kim Joo-hyun — also accompanied Yoon to show governmental support to the business community.