Jin-sik Choi, Chairman of Junggyeonryeon, "Solutions to Overcome Crisis Must Be Found in Regulatory Innovation"

Mid-sized Enterprises Urge Bold Regulatory Innovation
Call for Lower Inheritance Tax and Reconsideration of Commercial Act Amendment

To overcome the economic crisis and lay the foundation for a new leap forward, the mid-sized business sector expressed the opinion that proactive regulatory innovation to restore the vitality of companies, the core of the national economy, is the top priority.

Choi Jin-sik, Chairman of the Korea Federation of Mid-sized Enterprises, stated this on the 25th at the ‘Mid-sized Enterprises Meeting Invited by Kwon Young-se, Emergency Response Committee Chairman of the People Power Party.’ Chairman Choi said, “While the initial attempt to lower the highest inheritance tax rate at the end of last year was once again thwarted at the National Assembly, the amendment to the Commercial Act, which clearly hinders long-term investment and innovation by expanding directors’ fiduciary duties to shareholders, passed the National Assembly despite the industry’s desperate appeals,” adding, “Considering the decisive importance of corporate activities driving the economy, if measures that weaken corporate competitiveness by undermining the foundation of national wealth creation continue, the future outlook of the Republic of Korea will inevitably be pessimistic.”

Choi Jin-sik, Chairman of the Korea Federation of Mid-sized Enterprises (right), is delivering the 'Top 10 Priority Tasks for Mid-sized Enterprises' to Kwon Young-se, Emergency Response Committee Chairman of the People Power Party. Provided by the Korea Federation of Mid-sized Enterprises

Chairman Choi continued, “To revitalize the economy and expand quality jobs, which are prerequisites for overcoming the economic crisis, we must boldly overcome the limitations of recent inheritance tax reform discussions focused only on personal taxation relief and definitely lower the highest tax rate to 30%, the level of OECD advanced countries.”

He also added, “The amendment to the Commercial Act, which shakes the stability of corporate management and deprives all attempts to enhance competitiveness, directly contradicting the slogan of value-up, should be reconsidered from the ground up.”

On this day, the Federation of Mid-sized Enterprises delivered the ‘Top 10 Priority Tasks of the Mid-sized Business Sector,’ which includes improvement proposals in five areas: ‘Establishing a foundation for sustainable corporate growth,’ ‘Improving workers’ quality of life,’ ‘Enhancing employment flexibility,’ ‘Easing governance regulations,’ and ‘Strengthening mid-sized enterprise development,’ to Kwon Young-se, Emergency Response Committee Chairman of the People Power Party. Chairman Choi said, “To effectively respond to the unprecedented situation where the tough policy stance of the Trump administration’s second term is materializing as trade and commerce crises such as the abolition of Korea’s steel tariff-free quota, an extraordinary approach that transcends all inertia and ideology is necessary,” adding, “I hope the National Assembly will promptly resolve domestic political turmoil and actively seek preemptive solutions for national economic development, such as fostering key industries, rather than strengthening regulations that shrink business activities.”