Biz association heads urge support for new growth in meeting with DPK candidate

Democratic Party of Korea presidential candidate Lee Jae-myung, fourth from left, poses with the heads of the country's top five business associations during their meeting at the Korea Chamber of Commerce and Industry (KCCI) headquarters in central Seoul, Thursday. From left are Federation of Middle Market Enterprises of Korea Chairman Choi Jin-shik, Korea International Trade Association Chairman Yoon Jin-sik, KCCI Chairman Chey Tae-won, Lee, Korea Enterprises Federation Chairman Sohn Kyung-shik and Federation of Korean Industries Chairman Ryu Jin. Joint Press Corps

The heads of Korea’s top business associations and lobby groups called for government-level support for industries’ efforts to explore new growth momentum, during a meeting with leading presidential candidate Lee Jae-myung of the Democratic Party of Korea, Thursday.

Their requests came as they invited Lee in their plan to deliver policy recommendations from the business community to presidential candidates and listen to their economic policy schemes.

The participants included Korea Chamber of Commerce and Industry (KCCI) Chairman Chey Tae-won, Korea Enterprises Federation (KEF) Chairman Sohn Kyung-shik, Federation of Korean Industries (FKI) Chairman Ryu Jin, Korea International Trade Association (KITA) Chairman Yoon Jin-sik and Federation of Middle Market Enterprises of Korea Chairman Choi Jin-shik.

During the meeting, the business groups expressed concerns over the country’s lack of growth drivers and urged policy incentives to create an environment that encourages corporate investment in emerging industries.

“The current economic situation requires a new growth model that goes beyond the conventional methods,” Chey said. “I don’t believe we can facilitate growth with the same approaches that we have used in the past. Unless we try bold, untested strategies, it will be extremely difficult to achieve rapid growth for the Korean economy.”

Ryu also said that the Korean manufacturing industry has lost its growth momentum for the past two decades, as major industries, particularly petrochemical and steel, are falling behind Chinese rivals.

“We are in dire need of fostering emerging industries such as aerospace, robotics, biotechnology, future-oriented ships, defense and smart farming,” Ryu said. “But given the high investment risks in these sectors, it is difficult for companies to shoulder the burden alone. Like the U.S., China and Japan, the government must step in to support infrastructure and ease the financial burden through tax incentives.”

Yoon stressed the trade sector is in peril due to growing uncertainties in the global trade environment, including the U.S. tariff policies, and the new government should employ a proactive and flexible trade strategy based on national interest and practical gains.

Sohn expressed concerns about the potential impact of Lee’s proposal to introduce a 4.5-day workweek on the country’s labor market.

“Korea currently has a 12-hour cap in weekly overtime work, making it difficult for companies to respond flexibly to industrial changes, particularly in advanced industries that rely heavily on research and development,” Sohn said.

“Simply reducing the statutory working hours across industries could weaken corporate competitiveness and deepen the divide between large and small firms. We urge the government to respect the autonomy and choices of both labor and management in regard to any discussions on the 4.5-day workweek.”

Korea Chamber of Commerce and Industry (KCCI) Chairman Chey Tae-won, left, speaks to Democratic Party of Korea presidential candidate Lee Jae-myung during Lee's meeting with Korea's top business associations at the KCCI headquarters in central Seoul, Thursday. Joint Press Corps

The presidential candidate mostly agreed with the business groups’ opinions. “It is time for the government to trust the expertise and capabilities of the private sector and focus on providing strong support behind the scenes,” he said.

“I fully agree on the necessity to explore new growth drivers. And this will require transformation in existing industries as well as labor markets.”

Lee said he expects a broad shift toward artificial intelligence-driven high-tech industries in the future. He also expressed his interest in renewable energy, and added that government planning is just as important as corporate investment to support such transitions.

Regarding concerns on the 4.5-day workweek, Lee said he believes the country should move in that direction “gradually,” and that it requires “enough dialogues and debates” between involved parties.

“It won’t happen suddenly, like an abrupt declaration of martial law,” he said, referring to impeached former President Yoon Suk Yeol. “Let’s have sufficient public dialogue and reach a consensus. We should proceed step by step, in line with the level of agreement reached.”