KCCI Proposes to the Transition Committee "Establish a Presidential Regulatory Department"

Proposal for Corporate Policies Desired by the New Government
"Need for Labor Market Flexibility and Advancement of Labor Legislation"

President-elect Yoon Suk-yeol attended a luncheon meeting with the heads of six economic organizations held on the 21st at the Presidential Transition Committee in Tongui-dong, Jongno-gu, Seoul, and greeted Sohn Kyung-shik, chairman of the Korea Employers Federation. Photo by Yoon Dong-ju doso7@

[Asia Economy Reporter Choi Dae-yeol] The Korea Employers Federation (KEF) recently announced on the 27th that it submitted a corporate policy proposal reflecting the business community's opinions to the Presidential Transition Committee. The proposal was refined from suggestions made by President-elect Yoon Seok-yeol during his candidacy before the presidential election, narrowing down to 30 tasks across six areas.

The proposal covers legal and institutional reforms, tax system restructuring, enhancement of labor market flexibility, and advancement of labor legislation. It includes measures to supplement the Serious Accidents Punishment Act, support corporate carbon neutrality activities, and address issues linked to the National Pension Service and National Health Insurance.

Regarding regulations, KEF suggested that impact analyses be conducted by an independent private specialized institution and that a new presidential office dedicated to overall regulatory management be established. They also emphasized the need to establish a negative regulation principle. By fundamentally allowing activities and defining prohibited areas, regulations should be transformed to ease constraints on corporate activities and foster a social atmosphere that permits more challenging endeavors. The proposal also included applying a sunset clause system to legislative bills proposed by lawmakers.

Members of the Korean Confederation of Trade Unions' National Courier Workers' Union staged a sit-in occupation at the CJ Logistics headquarters in Jung-gu, Seoul, on the 11th of last month. Photo by Hyunmin Kim kimhyun81@

They proposed lowering the highest inheritance tax rate from 50% to 25% and expanding the scope of business succession tax deductions to include large corporations. The proposal also called for reducing the highest corporate tax rate from 25% to around 22%. They requested the relaxation of the Dispatch Act and Fixed-term Employment Act and asked for clearer interpretative guidelines to allow flexible working systems to be agreed upon at the department or team level, rather than by the entire labor union or all worker representatives.

The proposal also urged strict measures against illegal activities by labor unions. While supplementing the deficiencies of the Serious Accidents Punishment Act through legislation, they requested the inclusion of various options in a mid- to long-term pension reform roadmap. Lee Dong-geun, Vice Chairman of KEF, stated, "We will actively provide opinions to ensure that the tasks in the proposal are reflected in future government policies," adding, "Regarding long-term review tasks, we will continuously cooperate with the new government to voice the business community's concerns."