Business Community and Fair Trade Commission Hold Divergent Views on 'Economic Growth'

KCCI Calls for Regulatory Relief at Meeting
Chairman Joo Byungki Stresses "Inequality and Imbalance"

Despite appeals from the business community for urgent government policy support in the increasingly fierce global competition, competition authorities have prioritized addressing imbalance and inequality. While the business sector argues that a bold growth strategy is needed amid intensifying competition in advanced industries centered on artificial intelligence (AI), Joo Byungki, Chairman of the Fair Trade Commission, not only put the brakes on discussions to ease the separation of industrial and financial capital, but also reiterated the difference in perspective by stating, "Economic imbalance in Korea is creating a vicious cycle of low growth."

Chey Taewon, Chairman of the Korea Chamber of Commerce and Industry, at a meeting held on the morning of the 18th at the Korea Chamber of Commerce and Industry building in Jung-gu, Seoul, called for government policy support to back corporate innovation and change. Chairman Chey emphasized, "The Fair Trade Act has played an important role in minimizing market side effects over the past 45 years since its enactment, but with the global competitive landscape having changed completely, I am concerned whether the old ways can overcome the current trend. In an era where companies must innovate or be eliminated from competition, the demand for government policy support is greater than ever."

Joo Byungki, Chairman of the Fair Trade Commission (right), and Chey Tae-won, Chairman of the Korea Chamber of Commerce and Industry (center), are entering the "Fair Trade Commission Chairman Invitation Meeting" held on the 18th at the Chamber Lounge of the Korea Chamber of Commerce and Industry in Jung-gu, Seoul. Photo by Yonhap News

Joo Byungki, Chairman of the Fair Trade Commission, shared concerns about the entrenchment of low growth but placed emphasis on inequality. He stated, "The concentration of economic power among inefficiently oversized business groups, the imbalance in bargaining power among economic players, and social polarization remain major challenges. Although there are many highly capable individuals, truly secure and desirable job opportunities are extremely limited." He specifically referenced Adam Smith's "The Wealth of Nations," saying, "Easing the imbalance and inequality between large corporations and small and medium-sized enterprises, between the capital region and non-capital regions, and between urban and rural areas to create an integrated Korean society is the path to economic resurgence."

The leadership of the Korea Chamber of Commerce and Industry submitted several requests to the Fair Trade Commission on this day, including: improving criminal penalties under the Fair Trade Act, expanding incentives for compliance programs (CP), resolving overlapping disclosure requirements between the Fair Trade Act and other laws, and eliminating differentiated regulations for online and offline businesses under the Large-scale Distribution Business Act. While there were expectations that Chairman Joo's meeting with the business community-after having effectively halted discussions on easing the separation of industrial and financial capital-would lead to consensus on growth strategies, the differences in position were reaffirmed.

Chairman Joo reiterated, "The imbalance in the Korean economy perpetuates a vicious cycle of low growth and unfairness," adding, "The way to achieve economic resurgence is to strengthen the competitiveness of sound small and medium-sized enterprises and to build a society where small business owners and entrepreneurs are also protected. At the top of this collective capability are forward-looking and innovative business leaders."

On the 18th, at a meeting held at the Korea Chamber of Commerce and Industry building in Jung-gu, Seoul, attendees including Joo Byung-ki, Chairman of the Fair Trade Commission, and Chey Tae-won, Chairman of the Korea Chamber of Commerce and Industry, are taking a commemorative photo. Photo by Yonhap News

Earlier that day, at a "CEO Breakfast Meeting with Deputy Prime Minister and Minister of Science and ICT Baek Kyunghoon," the business community proposed to the government several measures to respond to the competition for dominance in advanced industries: support plans for AI infrastructure for small and medium-sized enterprises, improvements to data utilization regulations and institutional frameworks, and tailored support for the spread of AI across industries. Chairman Chey requested a bold strategy to restore growth rates, citing the intensification of technological hegemony competition.

The government plans to allocate an AI budget of 9.9 trillion won for next year and set the scale of the National Growth Fund's AI investment at 30 trillion won over the next five years, signaling proactive support. Deputy Prime Minister Baek Kyunghoon emphasized, "The world has entered a scaling up race to secure leadership in AI. We will support the achievement of a potential growth rate of 3% by rapidly acquiring world-class AI models and creating innovation cases in key industries such as manufacturing, defense, and biotechnology."