KCCI chief blames lawmakers for thwarting innovation

Korea Chamber of Commerce and Industry (KCCI) Chairman Park Yong-maan speaks during an interview at the chamber's headquarters in Seoul, Dec. 26. / Courtesy of KCCI

By Kwak Yeon-soo

Lawmakers and bureaucrats should be held accountable for the struggling Korean economy, according to the head of the nation's largest business association who stresses deregulation is key to revitalizing Asia's fourth-largest economy.

In a recent interview with The Korea Times, Korea Chamber of Commerce and Industry (KCCI) Chairman Park Yong-maan expressed his disappointment with policymakers who Park said have been blocking new industries from advancing mainly for their own political gain.

“It's about time we change the old set of rules and institutions, but the Assembly is immersed in winning votes for next year's general election scheduled for April 15,” Park said.

“It's frustrating to see economic problems being swept by political issues when startups are crying foul over regulations.”

Park has been raising his voice for regulatory reform, visiting the current 20th National Assembly 16 times since the inauguration of the Moon Jae-in administration.

He also strongly condemned inactive public officials, who also downplay the positions and problems of new businesses.

“Public officials offer passive administrative services, and this raises grievances in new businesses,” he said.

Park noted that the current government tends to divide people into interest groups, citing the recent controversy surrounding Tada, a ride-hailing service.

“The major obstacle to the growth and development of a new industry is the power vested in the government, the Assembly and the existing industry,” Park said.

Tada was launched in October 2018, and has grown rapidly to become Korea's leading ride-hailing service, boasting over 1.5 million users.

However, it was met with severe opposition from the taxi industry, which called Tada “illegal” because its drivers do not have taxi licenses.

To outlaw the Tada business, the Assembly passed a revision to the Passenger Transport Service Act at the Land, Infrastructure and Transport Committee.

If the revision is passed at the National Assembly plenary session and becomes law, the app-based service will become illegal one year and six months after proclamation of the law.

Park noted that the revision is threatening the convenience of the people ― the livelihood of 10,000 Tada drivers and hundreds of employees as well as customers.

“The government exists to serve the people, not only the privileged. Taxi drivers and Tada drivers are all citizens, but the government should prioritize the long-term benefits of the greater number of people,” Park said.

He also mentioned that young startup CEOs consider excessive regulations as the most worrisome problem for doing business here.

Park stressed that in 2020, he plans to introduce an enhanced regulatory sandbox ― a mechanism for developing regulations that keep up with the fast pace of innovation ― to allow more businesses to test a wider range of new products and services without a license.