Pro-biz groups give opinions on results of general elections

Pro-business groups have spoken on the results of Korea`s general elections Wednesday, urging cooperation from the political circle.

The Korea Chamber of Commerce and Industry issued a news release Thursday on corporate opinions of the 19th parliamentary elections held Wednesday. A survey of 300 companies found that almost 80 percent oppose lawmakers sticking to economic pledges, 22.3 percent said many unfeasible pledges should be reviewed, and 57 percent said pledges should be fulfilled flexibly depending on economic conditions instead of obsession with them. Just 20.7 percent of the polled companies said the pledges should be fulfilled at all costs.

Companies said they are pressured most by labor-related pledges (52 percent) such as cutting working hours, temporary workers and extension of the retirement age, followed by a rise in corporate tax (17 percent) and increased welfare support (13 percent) such as free school meals. They urged more labor market flexibility (42 percent), deregulation (35.3 percent), lower taxes (15.7 percent), and market opening (6.7 percent) to boost the Korean private sector.

The Korea Employers Federation said in a revised comment Wednesday night, when the election results were almost out, “The election results reflect the will of voters who want stability and sustainable growth. Politicians should accept their choices and further advance politics,” adding, “Irrational pledges that were raised in campaigns should be sent back to square one.”

Other voices in the business community say they must say what they need to, but few think criticism of large companies will not change soon.

“The general elections were not to judge pledges for reforming large companies,“ an executive of a large company said, adding, “Both the ruling and opposition parties will use the reform of large companies as a tool to take the initiative until the presidential election.”

Large businesses say the National Assembly will eventually legislate reform of large companies. Regardless of party lines, both the ruling and opposition parties have a consensus on corporate reform, and the minor opposition United Progressive Party, which is anti-corporation and pro-labor, took a big leap forward in the elections.

Though opposed to what the opposition wants, such as a cap on equity investment by family-controlled businesses and a ban on cross-sharing, the ruling Saenuri Party is likely to rev up reform plans related to partnered growth and fair trade. This will include a ban on large companies from entering markets where small businesses active, unfair trade practices, and protection of small businesses.

“The ruling party cannot be at odds with opposition parties from the beginning of the 19th National Assembly. Instead, it might make a concession or compromise on policy toward large companies,” a source from an employers’ group said, adding, “We are paying attention to who will take up the seats at parliamentary standing committees that cover large company-related policies, such as the National Policy Committee and the Environment and Labor Committee."

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