Uri Party Chair Promotes Deregulation

Ruling Uri Party Chairman Kim Geun-tae said on July 31, “We will come up with de-regulation measures as well as scrapping the current shareholding cap and draw up protective measures to make sure that companies are not burdened with the need to defend their management control.”

Kim said that when he visited the Korean Chamber of Commerce and Industry (KCCI) in Namdaemunro, Jung-gu, Seoul, with Uri Party’s chief policymaker Kang Bong-kyun. He had a policy meeting with the leadership of the KCCI including its chairman, Sohn Kyung-shik. He added, “I will recommend strongly presidential pardons for convicted business leaders to improve the economy and to seek social unity and a new start.”

It is true that ever since the crushing defeat in the May 31 local elections, the Uri Party has discussed the necessities of pro-business policies and scrapping the shareholding cap. However, this is the first time for Uri Party Chairman Kim Geun-tae, an activist-turned-politician, to openly speak about pro-business measures.

Uri Party and its chairman Kim’s pro-business move has started in earnest. Kim and the Uri Party are committed to embracing the businesses’ point of view in order to revitalize the economy and create new jobs even if conflicts arise with the government, which still sees economic reform as its top priority. The ruling Uri Party calls it the “New Deal” with the businesses. Kim said, “We will make every effort to that end. In return, the businesses must increase investment and create jobs focusing on hiring new employees instead of employees with experience.”

The businesses are still half doubtful. The KCCI said the adoption of the double derivative suit system needs to be delayed, and a commerce law revision is needed to defend Korean businesses from M&A, and it proposed a thorough review on the revision of the Financial Restructuring bill which is pending at the National Assembly.

ditto@donga.com