President Moon Jae-in shakes hands with Chairman Kim Ki-mun of Korea Federation of Small and Medium Business (K-BIZ) prior to a luncheon with heads of economic organizations at Cheong Wa Dae on Oct.4. (Photo on the courtesy of Cheong Wa Dae website)

President Moon Jae-in had a luncheon with heads of economic organizations at Cheong Wa Dae on Oct. 4 to explore ways of reinvigorating the sagging national economy, caused by outside and inside uncertainties.

President Moon said, “The purpose of (the luncheon) is to lend an ear to the voices of the business community and exchange views.”

He urged participants to express their views frankly. President Moon told the participating presidential aides that requests demanded by the business community during the meeting be reviewed.

 
Chairman Sohn Kyung-shik of the Korea Enterprises Federation (KEF), who came forward as the first speaker, referenced the management environment burdening Korean companies, coupled with ever-deepening global trade disputes.

Chairman Sohn asked for President Moon to deliver business-friendly messages so the government can boost businessmen’s morale.

He said exports and investments showed signs of decline as the Korea-Japan trade spat was followed by the U.S.-China trade conflict.

Making matters worse, the business community shared the view that it has been facing the burdensome management situation such as an excessive raise in minimum wage and a reduction in the workweek to 52 hours.

“The government has so far made many labor-friendly messages, but from now on I hope it will deliver business-friendly messages,” Chairman Sohn said. He recommended that the government reduce corporate tax and inheritance tax and it expand investment tax credit.

Chairman Park Yong-maan of the Korea Chamber of Commerce and Industry (KCCI) said, “It is the first time I’ve exchanged views frankly for six years since I took office as KCCI chairman.” He called for the expanding of regulatory sand box scope concerning pending regulatory reform bills, saying that the private ecosystem appeared to be unsound as the metabolism of the economy was slowing down.

Chairman Kim Ki-mun of Korea Federation of Small and Medium Business (K-BIZ) focused on the implementation of a 52-hour workweek system that subjects small- and medium sized businesses with less than 300 employees, effective next Jan. 1.

Chairman Kim called for a revamping of the workweek system, citing that there is a 9-month grace period before the system was mandatory for more than 300 employees.

He noted that a majority of businesses in the manufacturing industry are employing less than 300 people, and many presidents are involved in manual jobs in their worksites.

In return, President Moon said the government was aware of the hardships smaller companies are facing, and the government is working on supplementary steps.

President Moon called for the participants to discuss the parliamentary approval of a bill on flexible work and other measures. Chairman Kim also demanded the revamping of limiting to 50 million won in the cap for optional contracts among smaller businesses limiting a cap even though the limit set by the World Trade Organization stands at 200 million won. President Moon ordered his presidential sectary for policy to review the matter.

Chairman Kim Young-ju of the Korea International Trade Association recommended open innovation between conglomerates and smaller venture companies be boosted to overcome an economic crisis. Chairman Kim said, “Large-sized companies explore excellent venture companies to find new growth engines, while the latter needs to promote shared growth through collaboration with the former.”

Chairman Kim called for alternatives to the 52-hour workweek system like a flexible work system to reinvigorate startups.

President Moon asked if companies returning from Gaesong Industrial Complex in North Korea can be sustained despite a change of the government. K-BIZ Chairman Kim replied that if Korean companies as well as foreign firms are allowed to enter the Gaesong Industrial Complex, trust will be built up and they will be sustained.