Concerns growing over manufacturing exodus
By Lee Kyung-min Mauro F. Guillen, director of the Lauder Institute at the University of Pennsylvania's Wharton SchoolThere are growing concerns that major Korean manufacturers will accelerate the relocation of their factories and operations overseas amid the worsening business environment here. Global experts have said that the government's “anti-business” and “pro-labor” policies compounded by the prolonged U.S.-China trade war is forcing out not only foreign investors but local businesses, further adding strain to Asia's fourth largest economy.The rapid minimum wage hike and heavy regulations, they noted, could further undermine the country's growth prospects amid weakening economic fundamentals. The nation's GDP contracted 0.3 percent in the first quarter from the last three months of 2018, the worst performance in 41 quarters.“Public sentiment against business is running high, and this will continue to be driven high by the current administration's railroading,” said Yun Chang-hyun, a business professor at the University of Seoul. “Not o
