Son Kyung-sik Meets Yoon Seok-yeol: "A Free Environment Must Be Created for Corporate Survival"

"Paradigm Shift in Corporate Regulation and Improvement of Labor-Management Relations Needed"... Petition Delivered
Yoon Seok-yeol "Loosen Regulations for Export Companies, Provide Various Benefits for SMEs... Labor and Management Must Unite"

[Image source=Yonhap News]

[Asia Economy Reporter Ki-min Lee] Sohn Kyung-shik, chairman of the Korea Employers Federation, appealed to Yoon Seok-yeol, the presidential candidate of the People Power Party, on the 9th, asking him to "create a free business environment where companies can engage in dynamic economic activities to respond to and survive rapid economic and social structural changes."

Chairman Sohn made the remarks during a roundtable meeting with candidate Yoon held at the Federation of Korean Industries building in Mapo-gu, Seoul, in the afternoon. He said, "Innovations in digital technologies such as artificial intelligence (AI) and big data are giving rise to new industries in various fields and causing changes in economic and social structures."

He added, "Candidate Yoon has repeatedly emphasized the importance of economic growth and job creation, as well as the creativity and innovation of companies. While the role of companies as agents of innovation is becoming increasingly important, the significance of government policies is also being strongly emphasized. Today, global companies leading innovation in fields such as semiconductors, biotechnology, and secondary batteries are dominating global markets based on a business-friendly economic environment, whereas our companies continue to struggle in unfavorable conditions."

He went on to say, "The world's highest levels of inheritance tax burden and high corporate tax rates threaten business continuity and reduce investment attractiveness. Additionally, rapid increases in minimum wage and reductions in working hours are making it difficult for small and medium-sized enterprises. There are also many punitive regulations for businesspeople, requiring them to bear criminal law risks, and the labor relations climate is focused solely on strengthening the rights of established labor unions, which causes social conflicts."

Chairman Sohn handed over a business community proposal letter containing companies' difficulties and suggestions for improvement to candidate Yoon, urging him to "actively utilize it as a national blueprint for moving toward a new Republic of Korea."

Candidate Yoon responded, "For companies participating in global competition, regulations should be eased and support provided so they can win in the competition. Also, the government must efficiently carry out its roles in finance, technology, taxation, and market development to help small companies grow." He emphasized, "If I take charge of the next government, creating high-quality sustainable jobs will be the top national goal, and I plan to implement comprehensive policies across all economic, social, welfare, and even defense policies to create quality jobs."

The proposal letter included the need for a paradigm shift in regulations to revitalize businesses, the introduction of a legislative regulatory review process, improvements to the Commercial Act and the Fair Trade Act, and reforms of tax systems such as corporate tax and inheritance tax.

To create jobs, it also called for building a flexible and stable labor market, improving the minimum wage system and the high-cost, low-productivity structure, and expanding flexible work systems to increase women's participation in economic activities. Regarding labor-management relations, it pointed out the need to improve outdated or non-global-standard labor-management systems and to establish systems for rational and cooperative labor-management relations.

Furthermore, it urged restraint in indiscriminate quantitative expansion of welfare policies, the establishment of a sustainable social safety net to prepare for demographic shocks, improvement of educational practices that fail to meet industrial demand, and stable management of national finances. Especially with the Serious Accident Punishment Act set to take effect in January next year, the Federation of Korean Industries pointed out that industrial safety policies should shift from punishment to prevention, social awareness of safety should be improved, and low-carbon policies should be promoted in line with industrial realities.