[From Conflict to Harmony] Business Community: "Shadow of Uncertainty Lifted... but Global Crisis Remains"

Find a Way to Survive Amid Global Stock Market Turmoil
Triggered by U.S. Reciprocal Tariffs

The business community unanimously agreed that with the impeachment of President Yoon Seok-yeol, new leadership is needed, and now is the time to focus on revitalizing the economy. In a situation where global economic uncertainty has intensified following the Trump administration's announcement of reciprocal tariffs, it is imperative for us to restore political leadership and embark on a full-scale survival battle.

Students on a field trip are looking at the KOSPI, KRW/USD exchange rate, and KOSDAQ index displayed on the status board in the dealing room of Hana Bank headquarters in Jung-gu, Seoul. Photo by Yonhap News

Economic organizations have already stated through their statements that the severe economic situation must be taken into account. The Korea Chamber of Commerce and Industry said in a commentary released after the Constitutional Court ruling, "Considering the severe economic situation, we hope that the government will quickly normalize beyond social confrontation and conflict, and that efforts for economic recovery and stabilization of people’s livelihoods can continue." The Korea Economic Association also emphasized, "In the flow of a global industrial transformation, our economy is facing a complex crisis including deteriorating trade conditions, sluggish key industries, and domestic demand recession," adding, "It is time to concentrate all capabilities on economic recovery and revitalizing the livelihood economy." Similar statements were issued by the Korea Employers Federation and others.

Although companies have not issued separate positions, most are placing great significance on the lifting of the shadow of uncertainty that unsettled the market, following the Trump administration’s announcement of reciprocal tariffs and the Constitutional Court’s decision. A business community official said, "Even during the approximately two-month gap until the new government takes office, it will be important for the political circle and business community to join forces and solve the difficult economic situation one by one."

The economic sector is expected to actively voice opinions on various bills related to companies. In particular, among the bills promoted during the Yoon Seok-yeol administration, those considered favorable to companies are expected to be pushed forward as planned. The inheritance tax reform plan, which changes the inheritance tax to an inheritance acquisition tax system, is expected to proceed smoothly as the opposition party has also agreed.

However, regarding the ‘Commercial Act Amendment’ which remains controversial after Prime Minister Han Duck-soo, acting president, exercised his veto power, the business community is also requesting that their position be reflected. The amendment to the Commercial Act, which expands the fiduciary duty of corporate directors from the company to both the company and shareholders, has sparked opposition from the business community. Above all, there is concern that the existing policies might be overturned once the new administration takes office in two months. The uncertain fate of the Commercial Act amendment is expected to place the economic community in an uncertain situation. Additionally, since this government has reversed the nuclear phase-out policy and revived nuclear power, there is also a hope that the nuclear ecosystem will no longer be damaged.

Companies hope that the ‘pro-business policies’ promoted by the Yoon Seok-yeol administration will not be derailed. After President Yoon was impeached, most policies aimed at revitalizing corporate vitality were effectively halted. Until now, the government has continuously improved unnecessary regulatory parts legally imposed on companies and has promoted tax reduction policies such as corporate tax cuts and investment incentives targeting small and medium-sized enterprises. Regarding the semiconductor industry, the ‘Semiconductor Special Act,’ which provides about 1.2 trillion won in incentives through tax credits, was promoted, but its legislation is currently uncertain. Since major companies like Samsung Electronics and SK Hynix face threats from competitors in the global semiconductor market, the business community views this bill as a must-implement task. The ‘Power Grid Special Act,’ prepared to support the power demand of advanced industries such as artificial intelligence, is also drawing attention regarding its future promotion. The business community is expected to be highly attentive to corporate-related pledges from candidates of each party as the presidential election phase intensifies.