[Reporter’s Notebook] The Resigned Silence of Business Associations on Government Policies

"We have decided not to take a position on government policies related to safety."

Recently, an official from the Korea Chamber of Commerce and Industry responded this way when asked about the government's push for labor safety policies. Most companies have a negative view of the Lee Jaemyung administration's "eradication of serious industrial accidents" initiative, which was announced immediately after the administration took office. As the government pressed ahead with its policies, businesses appear to have chosen to avoid responding altogether. This reaction is more akin to resignation, as there is a widespread belief that voicing opinions during the policy process will not lead to any meaningful reflection in the final outcome.

Business associations have traditionally represented the interests of their member companies and have voiced their opinions on government policies without reservation. In particular, the Korea Chamber of Commerce and Industry, the Federation of Korean Industries, and the Korea Employers Federation have served as key channels for the business community. However, the atmosphere has changed recently. Similar to past instances when progressive administrations had strained relations with the business sector, there are now concerns that the opinions of the business community are not being sufficiently reflected in the policy-making process. With the faster-than-expected change in administration and the subsequent intensification of government-led policy initiatives, business associations appear to be struggling to respond effectively.

This phenomenon is also being felt on the ground at companies. Earlier this year, companies were hit hard by trade uncertainties caused by tariff policies from the Donald Trump administration. Now, with the Lee Jaemyung administration rolling out a series of regulatory policies under the banners of a "fair capital market" and a "society where no one is left behind," there is growing frustration that companies have no time to catch their breath. Key figures at major Korean companies have even lamented, "Even if you hit us, at least let us breathe," but such pleas are repeatedly ignored, further diminishing any willingness to communicate.

If the business community refrains from speaking up and becomes accustomed to such a passive stance, the consequences will ultimately come back to harm the industry and the Korean economy as a whole. It is only natural for dissatisfaction to arise when companies' perspectives are not sufficiently reflected in the policy discussion process. Nevertheless, it remains the responsibility of business representatives to voice their opinions, even if those opinions are pushed to the sidelines. If business associations remain silent, the government will also lose the ability to understand reality from a balanced perspective and to drive sustainable policies, which means both sides will ultimately share the blame.

The reason business associations are hesitant is due in part to past precedents, where administrations have selectively favored certain organizations based on their political leanings. However, for the sake of sound policy direction, it is no longer acceptable to remain timid. Business associations must represent the voices of their member companies and provide necessary, candid advice. Likewise, if the government truly aims to pursue pragmatism, it must collect input from all sectors with a balanced perspective. The introductory meetings with the new administration are already over. One of the original purposes of establishing business associations was to properly communicate the positions of companies. While there are areas for cooperation, there is also a clear responsibility to point out issues that deserve criticism.