On July 25, Federation of Korean Industries (FKI) Chairman Huh Chang-soo met with reporters during the 2014 FKI CEO Summer Forum, held at the Alpensia Resort in Pyeongchang, Gangwon Province, and said that deregulation as one of the most discussed topics as of late will contribute greatly to domestic economic revitalization.
“Nevertheless, we have to be quite stern on the dissenters if we are to be able to really achieve the goal,” he continued, adding, “Although the government is striving on its part, the result is not easy to come by and the visible results will be available next year or later at the earliest.”
Concerning environment-related regulations, he remarked that corporations are not blindly opposed to such regulations, and they are necessary for Korea to become a better country. “However, we need to think about the pace of such regulations, because excessive environmental regulations could deteriorate competitiveness on the corporate side,” he explained.
At present, the business community is strongly demanding the postponement of the greenhouse gas emission trading system that is scheduled to be put into place in January next year. The FKI is sharing the same stance as well.
“Even major business groups are struggling with adverse financing conditions these days, and smaller firms are also heavily concerned over the controversial taxation on internal reserves,” he added, “It is not desirable by any means to impose taxes on the internal reserves of companies, which are having a hard time right prior to bond maturity, yet failing at revolving.” He also mentioned that companies, by nature, are willing to make an investment if an attractive investment target is in sight, and thus the taxation should not be compulsory.
“These days, Deputy Prime Minister for Economic Affairs and Minister of Strategy and Finance Choi Kyung-hwan is emphasizing the restoration of dialogue among the government, labor world, and management for labor-management culture reform. I also believe that concession and harmony will be the key to further growth of the Korean economy,” he continued, saying, “The government’s pursuit of a 4 percent growth will be met only when the dialogue is back in place, and I hope that the new Deputy Prime Minister, who has abundant experience in the government and has the President’s full confidence, will do more than a good job with strong leadership.”