KCCI head pleads for SK chairman's release

By Park Jin-hai

Park Yong-maan KCCI chairman

Park Yong-maan, chairman of the Korea Chamber of Commerce and Industry (KCCI), called for the government to grant parole for imprisoned SK Group Chairman Chey Tae-won.

Park said Chey has served most of his time and should be given a chance to reinvigorate his group, which is facing various challenges.

“I’m not saying that we should give immunity to businessmen as they contribute to the national economy. What I’m saying is that the punishment should allow for a fresh start, and most of his time is now served, I plead that Chey, as head of a high-tech company, should be released to reinvigorate his company,” he said during a New Year interview held at the KCCI’s headquarter in Seoul, last week.

Chey and his young brother Chey Jae-won have served more than a third of their prison sentences. The older Chey has been in jail for 23 months after he was sentenced to four years imprisonment for embezzling tens of billions of won of company money.

Calling 2015 a critical time for the Korean economy, Park said the most impending task for the year is breaking down the entrance barriers and regulations for businesses.

“Without a revision of the law, it is not possible to have a breakthrough in reforms and regulations. When the law is revised and opens up the latches of big regulations, smaller regulations will be removed quickly,” Park said.

He stressed that given the size of a relatively small economy like Korea, post-reviews should replace pre-restrictions for businesses. “Businesses’ arms and legs should be freed so they can jump into the market and compete. After problems are found, that can be tackled by imposing regulations.”

The services sector, according to Park, is the area that has most promising growth potential, but is hindered by all sorts of regulations. “We couldn’t have reforms due to political reasons, but now is the time for us to make the critical first move.”

As for government investment support, he said a “more predictable” tax system would be helpful for businesses. “Businesses make investment decisions with long-term prospects. But, due to the frequent changes in the tax system, they cannot know what they will have the following year. The whole tax system, including corporate tax, should be predictable.”

Park said the global economy will be on a recovery path this year, but that this will not be so visible.

“The U.S. economy is the single engine that pushes the rest of the world. What we have now is a situation where we hope the U.S. economy will be bullish enough to continue to play that role, and we are expecting a trickle-down effect from 2016,” he said.

Park pointed out a range of challenges ahead, including a possible U.S. Federal Reserve interest rate hike, the volatile exchange market, a precarious geopolitical situation and China’s rise following current economic reform.

“The advanced nations strive to ride these challenges and fly higher. China after it succeeds in reforming five industries will be a powerhouse that could threaten our country’s competitiveness. This is why I call this year the last remaining golden time for our economy,” Park said.