Junggyeonryeon Delivers 'New Government Economic Policy Proposals' to Transition Team
Suggestions to Alleviate Anti-Business Sentiment and Innovate R&D Systems
"Special Act for Mid-Sized Companies Should Be Converted into a General Law"
Choi Jin-sik, Chairman of the Korea Federation of Medium-sized Enterprises Photo by Korea Federation of Medium-sized Enterprises
[Asia Economy Reporter Kwak Min-jae] The Korea Federation of Medium-sized Enterprises (Korea Federation) delivered a 'New Government Economic Policy Proposal' to the 20th Presidential Transition Committee on the 5th, requesting a revolutionary shift by adjusting all regulations, including taxation, to the average level of the top 10 OECD countries.
The policy proposal includes 66 tasks across 9 areas: ▲strengthening institutional competitiveness ▲creating a corporate growth ecosystem ▲activating research and development (R&D) and investment ▲labor reform and improvement of worker treatment, among others.
The Korea Federation stated, “The distorted regulatory environment based on a biased anti-business sentiment must be corrected based on the standard of improving citizens' lives,” adding, “Social discussions to rationalize indiscriminate regulatory legislation that stifles entrepreneurial spirit and erodes corporate innovation capabilities should be expedited.”
The Korea Federation emphasized, “We need to resolve the chronic unfairness of burdening medium-sized enterprises with all kinds of regulations as soon as they enter from small businesses and improve the legal and institutional environment to strengthen global competitiveness through R&D investment and tax support,” further stating, “In particular, the national R&D support system, which is currently distributed in a piecemeal manner, should be completely reorganized to focus on innovative medium-sized enterprises to enhance the effectiveness of the system and spread a progressive culture of innovation throughout the industry.”
The Korea Federation highlighted, “Although the 5,526 medium-sized enterprises account for only 1.4% of all companies, they are the core group of South Korea’s economy, responsible for 16.1% of sales and 13.8% of employment,” emphasizing, “More important than aggregate figures is the correct recognition of the role of medium-sized enterprises as the 'waist' of the corporate ecosystem, their practical capabilities in driving the growth of small and venture companies, and strengthening the global competitiveness of large corporations.”
Furthermore, the Korea Federation stated, “To support the continuous growth of medium-sized enterprises, the 'Special Act on Medium-sized Enterprises,' which is set to expire in July 2024, must be converted into a general law,” adding, “We will expand consensus and cooperation not only with the new government but also with the National Assembly and civil society.”
Choi Jin-sik, chairman of the Korea Federation, said, “Companies and the government are key cooperative partners in building the economic foundation that underpins the lives of every citizen and the fulfillment and prosperity of all generations,” and expressed hope that “the next government will actively create a stable management environment that maximizes corporate innovation capabilities.”
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