Deregulation needed; companies should pay heed to workers' rights
The chiefs of major business lobby groups unanimously called for deregulation in their New Year messages. They voiced anxiety over a package of bills that passed the National Assembly, saying they would undermine business activities and have an adverse effect on companies' investment and employment decisions.
The business leaders' stance contrasts with their previous messages where they usually presented new directions or managerial keywords with resolutions for the New Year. Sohn Kyung-shik, chairman of the Korea Enterprises Federation, said, "Recently a series of bills were legislated which we fear will curb companies' activities." He called on the government to make a "paradigm shift" in mapping out business-related rules and regulations.
Huh Chang-soo, chairman of the Federation of Korean Industries, cited the need for Korean companies to be able to compete with foreign firms on equal footing. "They need a basis to compete in the global market in a fair manner," said Huh who is also chairman of GS Group.
Park Yong-maan, chairman of the Korea Chamber of Commerce and Industry, echoed their concerns, saying, "The government should make efforts to boost the dynamics of the economy instead of legislating regulations."
The business leaders expressed anxiety over the bills, which are aimed at toughening scrutiny of corporate governance and punishment for CEOs or high-ranking managers for occupational accidents or deaths. They said the legislation of the bills with heavier punishments will thwart entrepreneurship.
It is understandable for the lobby group chiefs to come forward with statements filled with concerns and pleas, given the aggravating business conditions. Amid the persisting COVID-19 pandemic, many industries ― including the airline, tourism and retail industries in particular ― have been suffering tremendous losses. The government should listen to the businesses' claims that such regulatory bills will corner the companies into further difficulties.
The government and ruling Democratic Party of Korea have been pushing the bills, claiming they are designed to level the playing field to provide fair opportunities. Truly, domestic companies have been struggling due to diverse regulations coupled with a strict labor market. The government should get rid of regulations that hinder efforts to promote business activities, and work to boost economic growth and employment.
Yet the businesses, for their part, should focus on developing a safer work environment for their employees. They need to pay heed to the fact that Korea registered 855 deaths from industrial disasters in 2019, the highest number among OECD member countries, according to the Ministry of Employment and Labor. In addition, Koreans worked 2,024 hours per year on average, compared with the OCED average of 1,746 hours, according to the OECD's 2019 data. This means they worked 35 more days a year on average than others working in OCED countries. Companies can survive the harsh business environment only when they secure support from their employees.
Large business groups should also pay attention to the rapidly changing industrial paradigm shift toward the Fourth Industrial Revolution, with a focus on state-of-the-art industries like energy, bio, mobility and robotics, to ensure their survival. Time is running out. It is not proper for them to complain only about the regulations.
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