KCCI to Jointly Propose 'Minimum Wage Decision System Reform' with Business Community

Choi Tae-won's Platform Communication: 430 Proposals in Two Months
Voting Issue 'Relaxation of Mandatory Closure for Large Supermarkets' Tied at 49% Support vs 43% Opposition

[Asia Economy Reporter Hwang Yoon-joo] The Korea Chamber of Commerce and Industry (KCCI) is jointly proposing to the government by the economic sector a 'reform of the minimum wage determination system.' This reflects the opinions gathered from the economic sector and the public through the 'KCCI Communication Platform,' and plans to also convey opinions such as 'expansion of government support for private donations,' 'relaxation of the business succession deduction system,' and 'easing regulations on regular closures of large marts (twice a month)' to the government and the new administration.

On the 12th, KCCI announced that it is preparing four proposals from votes and discussions held on the 'KCCI Communication Platform,' which opened last November under the motto 'I Change the World,' as official government proposals and follow-up projects.

The Communication Platform is an open opinion-gathering site where not only businesspeople but also any citizen can propose opinions on economic and social issues. If the proposals gain support, KCCI submits them to the government and the National Assembly or seeks solutions through its own projects. The platform development was initiated by Chairman Chey Tae-won, who took office last year. The platform process is as follows: in the first stage, 'Propose,' if a proposal gains support from more than 200 people, it is registered as a 'Voting Agenda' in the second stage. If the voting reaches more than 500 participants and a support rate of over 50%, KCCI officially submits the proposal and provides feedback.

Six voting agendas have been registered, and among them, four are undergoing follow-up actions after the voting ended. The highest priority among the follow-up agendas is the 'reform of the minimum wage determination system.' A joint proposal from the economic sector will be submitted to the government within the first quarter of this year, aiming to reflect it in the new administration's policy direction.

The 'expansion of government support for private donations' proposal was submitted to the Ministry of Economy and Finance last November and is expected to be actively reflected during the tax law revision consultation in March.

The proposal that received the most support so far on the platform is 'expansion of practical support measures for small and medium-sized merchants' (654 supports), showing that the public empathizes with the difficulties faced by small and medium-sized merchants due to the prolonged COVID-19 pandemic. Following this, proposals for 'improvement of low birthrate policies' and 'reduction of online delivery packaging materials' also received significant support, indicating high public interest in the future of society and environmental issues.

Among the ongoing voting agendas, the issue with the most divided opinions is the 'easing of mandatory closures of large marts twice a month.' Supporters (49%) and those favoring maintaining the current system (43%) are closely matched. Opinions are split between those who argue that the mandatory closure regulation is ineffective given the dominance of online distribution transactions, and those who believe the regulation should remain to support small merchants as it is already institutionally established.

The proposal to 'relax the conditions for business succession deductions so that established companies can continue their family businesses' received 63% support, significantly higher than the 37% favoring the current system, indicating many believe that inheritance tax burdens should be eased on the premise of business succession.

The two voting agendas, 'expansion of government support to activate private donations' and 'reform of the minimum wage determination system,' received overwhelming support at 85%. Currently, voting is ongoing on two agendas: 'reduction of electric vehicle subsidies' and 'providing incentives to companies reducing packaging materials.'

Meanwhile, when looking at the proposals by sector, those related to 'ESG,' the biggest topic in the economic sector, accounted for 29%, the highest proportion. This was followed by 'social safety' (24%), 'corporate support' (13%), 'finance and taxation' (10%), and 'general life' (8%).