51st Commerce Day Ceremony Special Lecture
Promotion of Labor Market Flexibility Policies
Emphasizing Achievements of Rhee Syngman and Park Chung-hee... Consecutive Days of Criticism Against Moon Administration
President Yoon Suk-yeol stated on the 20th, "The government will actively improve systems to ensure smooth business succession, increase the number of long-standing companies, stabilize employment, and enable continuous economic growth."
In a special lecture at the '51st Commerce Day Ceremony' held at the 63 Convention Center in Yeouido, Seoul, President Yoon promised, "The issue of business succession, which many of our entrepreneurs struggle with, must be examined with the survival and sustainability of companies in the global market in mind."
President Yoon pointed out, "Our current system generalizes and normalizes the separation of ownership and management typical of global listed large corporations, making it very unrealistic for our companies," adding, "The tax rates are very high and the requirements are very stringent." He especially criticized, "Many companies are passing from the first generation to the second and third generations, but due to concerns over inheritance tax, they cannot even dare to pursue innovation, let alone improve corporate value or employee treatment," calling it "an extremely inefficient situation."
He cited Germany's business succession system, where the highest inheritance tax rate is much lower than ours, explaining, "As a result, Germany today has become a country with the world's largest hidden champions and century-old companies."
"For the Economy"... Yoon Emphasizes 'Breaking Up Monopolies and Union Cartels'
Referring to monopolies and vested-interest unions as 'cartels,' he repeatedly emphasized the government's policy that bold reforms are necessary for economic development. President Yoon said, "The government will not stop efforts to break up monopoly cartels," and urged, "Our companies themselves must break away from the practice of complacency in seeking rents through monopolies."
He also called for bold innovation in the financial sector centered on the five major banks. President Yoon pointed out, "Interest income of our country's banks reaches 60 trillion won, with the five major banks earning over 40 trillion won of that. However, not a single Korean bank ranks within the top 50 in the global bank rankings," adding, "This is ultimately the result of complacency in seeking rents within a monopoly structure."
Regarding strong unions, President Yoon said labor reform is the most urgent issue, stating, "Our current labor environment is by no means normal. Due to vested-interest union cartels armed with ideology, illegal activities are rampant in workplaces, and the dual structure of the labor market is deepening, pushing powerless unorganized workers into even more precarious conditions."
He continued, "Our government has so far firmly guaranteed lawful labor movements and strictly responded to illegal acts regardless of labor or management according to law and principles. We have boldly corrected illegal collective agreements that deprive youth of jobs such as employment inheritance, and introduced union accounting disclosure systems to increase transparency and trust in union activities," emphasizing, "As a result, the number of lost workdays due to strikes has decreased to one-third of the average under previous administrations. We will accelerate other reform tasks on the foundation of labor-management rule of law."
President Yoon explained that the 52-hour workweek framework will be maintained to guarantee workers' health and rest rights, and improvement plans will be prepared focusing on industries and occupations where labor and management desire flexibility. He also mentioned plans to transition from seniority-based wage systems to job performance-based pay systems, expand various work styles such as hybrid remote work, and implement labor market flexibility policies that allow flexible working hours.
Emphasizing the Achievements of Presidents Rhee Syngman and Park Chung-hee, Criticizing the Moon Administration for Two Consecutive Days
President Yoon highlighted the economic policy achievements of former Presidents Rhee Syngman and Park Chung-hee, as well as the accomplishments of Samsung Group Chairman Lee Byung-chul and Hyundai Group Chairman Chung Ju-yung, while strongly criticizing the previous Moon Jae-in administration's nuclear phase-out policy. His repeated criticism of the previous government is interpreted as remarks aimed at differentiation ahead of the general election in about 20 days.
President Yoon first said, "As the saying goes, the locomotive of President Park Chung-hee ran on the rails laid by President Rhee Syngman; the great decisions of these two presidents laid the foundation for today's prosperity," adding, "When liberation came in 1945, the North chose communist totalitarianism, while we founded the Republic of Korea based on freedom democracy and a capitalist market economy through the decision of former President Rhee Syngman." Listing former President Rhee's establishment of the nuclear power foundation and former President Park's long-term nuclear power plans and construction of the Kori Nuclear Power Plant Unit 1, President Yoon said, "Starting from this, our country has now become a global nuclear power," and evaluated, "There is no end to listing Park Chung-hee's achievements, but his greatest accomplishment was raising a defeated people."
He continued, "Along with these two presidents, there are great entrepreneurs we must remember," emphasizing, "Chairman Lee Byung-chul's foresight, who led the era from textiles to fertilizers, then electronics to semiconductors, created today's Samsung and Korea. Chairman Chung Ju-yung, when planning shipyard construction in 1971, took out a 500-won bill showing a picture of the Turtle Ship and persuaded lenders by saying that we had already built such ironclad ships 500 years ago in the 1500s, securing loans."
On the other hand, regarding the Moon administration's nuclear phase-out policy, President Yoon said, "Nuclear power is the foundation of our industry and economy," adding, "However, pushing forward the nuclear phase-out policy destroyed the nuclear ecosystem, and the damage has returned to our industry and the entire nation." He especially criticized, "Indiscriminate populism obsessed with fiscal omnipotence has increased the debt by 400 trillion won in just five years, exceeding 1,000 trillion won," and said, "The government gave handouts but passed the bill to future generations."
Earlier, at the 21st Public Livelihood Discussion held at the Mullae Arts Factory in Yeongdeungpo, Seoul, under the theme 'A New Miracle of the Han River through Urban Innovation,' President Yoon criticized the Moon administration's official land price realization roadmap as 'populism' and 'bad law.' At that time, he cited the increase in official land prices over five years under the Moon administration, resulting in higher property taxes and soaring rents, pointing out, "Wrong real estate policies have not only sharply increased the housing cost burden on the people but also worsened livelihoods in various ways."
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