KEF Chair Sohn Kyung-shik (KEF)
KEF Chair Sohn Kyung-shik (KEF)

Sohn Kyung-shik, chair of the Korea Enterprises Federation, described the new year as a “golden time” for economic transformation, saying Korea needs a business environment that is more conducive to corporate innovation and risk-taking.

In his New Year’s address Monday, Sohn highlighted the need to advance structural reforms in areas such as regulation and labor.

“Rigid labor market regulations need to be eased,” Sohn said, arguing that Korea’s labor market is slow to adapt to industrial change and less productive than those of competing economies.

Greater labor flexibility, he argued, would also help address debates over extending the retirement age without undermining youth employment.

“Reforming labor-management relations is also an urgent task,” Sohn noted. “Korea’s labor relations rank near the bottom globally and have become an impediment to national competitiveness.”

He urged greater adherence to the rule of law and dialogue at worksites, along with legal changes to give companies more balanced tools in dealing with unions.

Bold economic policies to restore corporate confidence and spur investment in areas such as artificial intelligence, semiconductors and robotics will require strong government support, according to Sohn.

“Unnecessary regulations should be rolled back, and tax policy should focus on enhancing competitiveness rather than becoming a political or ideological issue, with excessive corporate and inheritance taxes brought closer to levels in competing economies,” he said.


minmin@heraldcorp.com