KCCI chairman calls for incentive-based deregulation as growth driver

Korea Chamber of Commerce and Industry (KCCI) Chairman Chey Tae-won delivers his keynote address during the National Assembly's Future Industry Forum in Seoul, Tuesday. Joint Press Corps

Korea Chamber of Commerce and Industry (KCCI) Chairman Chey Tae-won said Tuesday that the country’s export-driven economic model is under strain amid global industrial disruptions, calling for an incentive-based deregulation framework to encourage companies to help address social challenges.

Chey made the remarks during a keynote speech at the National Assembly’s Future Industry Forum, which was launched Tuesday to explore new directions for industrial policy amid rapidly shifting global dynamics.

During the forum, he said the world is not likely to return to the free trade order led by the World Trade Organization anytime soon, with protectionism expected to dominate the global trade order for at least the next three decades.

“We need to think seriously about how we can sustain ourselves during this era,” he said. “If we don’t fundamentally change our existing business models and the way we’ve been doing business, it will be difficult to survive under the current system.”

To navigate the challenges, Chey emphasized the need for Korea to expand markets through partnerships with countries that share similar economic structures, particularly Japan. He also noted that the country should focus on attracting high-level talent to Korea to boost economic growth and industrial competitiveness while promoting the export of intellectual property.

For these goals, Chey proposed “a mega sandbox” that would provide companies with both infrastructure support, including artificial intelligence (AI), and regulatory exemptions at the municipal level.

“We should ease regulations that companies want, build infrastructure such as AI and offer bold incentives within specific regions,” he said. “Although this approach hasn’t been tried in other countries, it could be a highly effective solution.”

He also proposed a “social achievement incentive system” to encourage voluntary corporate participation in solving social issues.

Chey argued that governments alone can no longer effectively solve today’s increasingly complex social problems, while emphasizing the need for more “micro-level problem solvers,” including private companies which are willing to step in if given the right incentives.

“We need to create a market by encouraging companies to engage in solving social problems and by measuring and rewarding their contributions,” he said.

The forum was hosted by the National Assembly Futures Institute, attended by National Assembly Speaker Woo Won-shik, Deputy Speaker Joo Ho-young, Democratic Party of Korea floor leader Rep. Park Chan-dae, People Power Party floor leader Rep. Kweon Seong-dong and other floor leaders of minor parties.