[Reporter’s Notebook] The Silence of Economic Associations: Who Will Speak for the Business Community?

Economic Associations Remain Silent After "Fake News Incident"

A Stark Contrast to U.S. Chamber's Immediate Statements on Tariff Hikes

Need to Communicate Corporate Difficulties and Present Solutions

"It is difficult to comment." "Please keep my name anonymous."

These are the responses most frequently heard from representatives of economic organizations when covering major industrial issues recently, such as the Special Act on U.S. Investments and the amendments to the Commercial Act. Almost as if by prior agreement, they repeatedly voiced caution, saying "We are being careful" or "We are monitoring the situation." Even though each of these bills has a direct impact on the business environment, official statements from economic organizations, which are supposed to consolidate the voice of the business community, are rarely seen.

Recently, the Korea Chamber of Commerce and Industry faced significant difficulties due to the so-called “fake news crisis” surrounding inheritance tax statistics, and as a result, a cautious atmosphere has spread across economic organizations in general. There seems to be a calculation that it is better to keep quiet than to risk being caught up in political controversy or unnecessary misunderstandings by making a premature statement. However, the issues currently facing the domestic industrial sector are by no means trivial. The Special Act on U.S. Investments, designed to address U.S. tariff policies, is directly related to Korean companies’ investment risks in the U.S. The longer the delay in processing, the greater the uncertainty, and the more businesses’ decision-making is disrupted. The third amendment to the Commercial Act, which mandates the retirement of treasury shares, also affects overall corporate governance and the business environment. In times like these, it is all the more important for economic organizations to gather the voices from the field and bring them into the policy debate.

Economic organizations are not merely private sector groups. They serve as an important channel that aggregates the voices of hundreds, or even tens of thousands, of member companies from the industry and communicates with policy authorities. Large corporations, due to political burdens, and small and medium-sized enterprises, due to a lack of information and channels, find it difficult to directly express their opinions to the government or the National Assembly. In this context, economic organizations act as a kind of “insurance.” This function is likely the main reason why individual companies pay membership fees and participate as members.

The passive stance of these organizations is all the more regrettable when compared to their overseas counterparts. The U.S. Chamber of Commerce, the largest economic organization in the United States, recently issued an immediate statement opposing the Trump administration’s announcement of high tariffs on Canada, Mexico, and China. Not only did it directly criticize the price increases and supply chain disruptions that tariffs would cause, but it also pledged to seek solutions with both Congress and the administration. This demonstrates that it is the core role of economic organizations to voice opinions in real time and participate in the policy-making process, even on politically sensitive issues.

If the silence of economic organizations continues, the burden will ultimately fall on companies. There is a risk that policies may be decided without fully reflecting the stance of the industry, and any resulting losses for individual companies may be impossible to compensate for later. Organizations representing the business community should not restrict their voices to only “safe issues.” Sometimes, even if it means taking on risks, they must represent the realities faced by companies based on thorough analysis and objective data. The competitiveness of the industry starts with the voice of economic organizations that candidly convey the difficulties of companies and propose alternatives.

This content was produced with the assistance of AI translation services.