The six major business groups urged the government to improve regulations that hinder corporate investment. They requested that the government accelerate support for licensing and infrastructure so as not to miss optimal investment timing, and also called for policy support linking the cultivation of new industries with exports and entry into global supply chains.
At a meeting on the 7th at the Korea Chamber of Commerce and Industry (KCCI) in Jung-gu, Seoul, between Vice Prime Minister and Minister of Economy and Finance Lee Hyeong-il and the heads of the six major business groups, the business groups requested government cooperation to ensure that licensing, infrastructure, and necessary support are provided promptly in line with corporate investment schedules. Attendees included Chey Tae-won, Chairman of the KCCI; Ryu Jin, Chairman of The Korea Economic Daily (Hankyung) Association; Yoon Jin-sik, Chairman of the Korea Trade-Investment Promotion Agency (KITA); Kim Ki-moon, Chairman of SME Central Association; Choi Jin-sik, Chairman of the Korea Mid-sized Company Association Yeon Hap-hoe (Chairman); and Lee Dong-geun, Executive Vice Chairman of the Federation of Korean Industries. This was the first official meeting between Vice Prime Minister Lee and the heads of the six major business groups since his appointment.
During the meeting, demands for regulatory improvements to boost investment and policy support to back the overseas expansion of new industries followed one after another. In particular, KITA Chairman Yoon Jin-sik stated, "New industry cultivation policies, such as mega-projects, need to consider linkage with entry into overseas markets from the early stages," adding, "Support for international standard recognition and essential overseas certifications should be provided from the development stage." He further added, "To diversify export structures and expand the export base, we must cultivate service exports and improve the system for recognizing direct and indirect export performance through various methods such as online provision, subscription and licensing contracts, and platform transactions," noting that "the support foundation in areas such as finance and taxation also needs to be strengthened."
Along with this, the six major business groups requested customized AI (artificial intelligence) support for SMEs to reduce the gap between large corporations and SMEs. Regarding the extension of retirement age, they proposed a flexible approach that leverages the experience of older workers while securing job opportunities for the youth by utilizing methods such as re-employment after retirement, rather than a uniform method.
Demands from the business community for regulatory improvements have continued for some time. In a meeting with Han Seong-suk (Prime Minister) last August, the business community also called for reform of the regulatory system to support investment and growth in new industries. At that time, Choi (Chairman) emphasized that it is necessary not only to eliminate individual regulations but also to examine the causes behind their creation and improve institutional design. Ryu Jin, Chairman of The Korea Economic Daily (Hankyung) Association, also proposed the need to transition the regulatory system to a negative approach that permits businesses in principle and prohibits them exceptionally.
The government is also reflecting on-site difficulties raised by the business community in its policies. The government included tasks identified with the six major business groups and from corporate sites in the 1st and 2nd "Site-Centered Corporate Investment and Innovation Support Plans." These include allowing integrated bidding for electrical and communication works for semiconductor fabs (FABs) and shortening the licensing period for investment in converting internal combustion engine vehicle factories in Ulsan to electric vehicles from the existing three years to within one year. Regulations related to factory expansion within large industrial complexes and collaborative robots and new types of robots will also be improved. Vice Prime Minister Lee urged, "Please continue to provide opinions and cooperate so that voices from the field can be sufficiently reflected in policy."
in INDUSTRY
