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.
Korea’s business lobbies urge new president to spur economic recovery
Then-presidential candidate Lee Jae-myung listens to Korea Chamber of Commerce and Industry (KCCI) Chairman Chey Tae-won during a roundtable hosted by Korea's five major business groups at the KCCI headquarters in Seoul, May 8. Joint Press Corps
By Lee Min-hyung
Korea's major business lobbies have urged President Lee Jae-myung to spur economic recovery, as the country struggles to navigate mounting challenges posed by global protectionism and a rapid tech paradigm shift.
Lee of the liberal Democratic Party of Korea was elected president after defeating Kim Moon-soo of the conservative People Power Party, winning 49.42 percent of the vote to Kim’s 41.15 percent.
In a statement, the Korea Chamber of Commerce and Industry asked for the next administration to drive Korea’s economic rebound with strong leadership.
“The country faces multiple challenges of low growth, low birthrate and the extinction of small towns,” the business lobby said. “Coupled with the domestic agendas, the president is advised to harness national capabilities to navigate the rapidly changing global environment, represented by growing protectionism and artificial intelligence-driven tech innovation.”
Federation of Korean Industries Chairman Ryu Jin / Korea Times file
The Federation of Korean Industries also called on Lee to build a more business-friendly environment to help the country tackle worsening global trade uncertainty and slowing domestic growth.
“The new government is urged to establish a pro-business environment that fosters a spirit of innovation and challenge,” it said.
It also brought up an agenda of reviving Korea’s faltering manufacturing sector as a top priority for the next administration.
“The revival of the so-called K-manufacturing sector is an urgent task,” it said. “The president should also proactively support growth in cutting-edge industrial areas.”
The Korea International Trade Association (KITA) expressed hopes that Lee will focus on minimizing upcoming trade risks.
“The ongoing trade issue with the United States and global competition for technological hegemony cloud the outlook for the Korean economy,” the nation’s largest trade association said.
The statement came amid ongoing trade pressure from the world’s largest economy which has imposed multiple tariffs on Korea’s key export items, including automobiles and steel products.
The absence of clear presidential leadership has so far hindered Korea from remaining agile in dealing with tariff-driven export uncertainties.
Korea International Trade Association Chairman Yoon Jin-sik / Korea Times file
Swiftly responding to changes in global trade conditions, the new government needs to utilize practical trade strategies and help reduce Korean firms’ mounting trade risks, KITA said.
It also expected the next government to abolish unnecessary regulations for economic revitalization.
“The new government is also advised to offer consistent policy support for Korea’s sustainable growth in exports, while at the same time expanding investment in new high-tech industries such as system semiconductors, future mobility, secondary batteries, bio and defense.”
The Korea Enterprises Federation echoed a similar view, expressing hopes that the new government will build a more flexible and stable labor market for corporate growth.
“Jobs are created only when companies survive,” it said. “The government should drastically improve a series of regulations getting in the way of growth for private firms.”
It also pledged to do its best to back up the government’s drive for more investment, job creation and social responsibility.