Business Community: "Second Half Economic Policy Direction to Promote Exports and Investment... Boost Economic Vitality" (Comprehensive)

The business community expressed a positive evaluation of the government's economic policy direction for the second half of this year announced on the 4th, showing expectations for economic vitality.

The Federation of Korean Industries (FKI) stated in a commentary on the same day, "In a situation where domestic and international uncertainties persist, such as delayed global economic recovery, high interest rates and high exchange rates, and intensified US-China conflicts, the government's private sector and market-centered economic policies are expected to be of great help in overcoming the immediate difficulties faced by companies and restoring the growth engine of the Korean economy."

President Yoon Suk-yeol is speaking at the 18th Emergency Economic and Livelihood Meeting on the Economic Policy Direction for the Second Half of 2023, held on the 4th at the Blue House State Guest House.
[Photo by Yonhap News]

It added, "Above all, we welcome the expansion of investment incentives to foster advanced industries and strengthen corporate competitiveness," and predicted, "The expansion of tax credits for investments in national strategic technologies such as future cars and bio, and the strengthening of tax support for the reshoring of advanced strategic industries will contribute to expanding the growth potential of our economy by enhancing private sector technological competitiveness."

The Korea Chamber of Commerce and Industry (KCCI) evaluated in a commentary by Kang Seok-gu, Head of the Research Headquarters, that "In the midst of a continued economic slowdown, focusing on boosting economic vitality through export and investment promotion and improving the economic structure by fostering advanced industries is an appropriate direction."

Furthermore, it mentioned, "We hope that the exploration of promising export markets linked to normal diplomacy and trade finance will be promoted swiftly to realize a positive turn in exports, and that industrial competitiveness will be upgraded through tax and investment support, foreign investment, and support for reshoring companies."

The Korea Employers Federation (KEF) also stated, "(The economic policy) is designed to enhance the vitality of our economy through export, investment promotion, and domestic demand revitalization, focusing on structural reform and fostering advanced industries to improve the industrial structure," and urged, "We hope the government will more strongly implement measures such as regulatory innovation, labor reform, and tax improvement so that our economy can overcome the global complex crisis well and improve corporate global competitiveness to increase growth momentum."

The Korea International Trade Association (KITA) welcomed the economic policy direction for the second half of the year, which laid the foundation for export expansion through improvements in the business environment such as expanding support for national strategic technologies, improving the research and development (R&D) support system, and reforming immigration policies, in a commentary by Vice Chairman Jeong Man-gi.

Vice Chairman Jeong expressed expectations, saying, "In the recent situation where 25% of exporting companies find it difficult to cover interest expenses with operating profits due to high interest rates, the government's policy to support a record-high 184 trillion won in trade finance will greatly contribute to overcoming financial difficulties in the export sector."