‘Political criticism of enterprises delays corporate investment`

“I regret the situation that Korean companies are well treated overseas but not in Korea.”

Lee Dong-geun, executive vice chairman at the Korea Chamber of Commerce and Industry, made the remarks about anti-enterprise sentiment at a press meeting in Seogwipo, Jeju, where the chamber’s “38th Jeju Forum” took place on Friday.

Lee was a member of the economic entourage during President Park Geun-hye’s state visit to China. “There is difference between the way China treats Korean enterprises, and the way Korea treats our enterprises in the country,” Lee told reporters. “Criticism by the Korean National Assembly and society has gone too far.”

He also criticized the situation where companies’ investments are being delayed due to lack of cooperation by the political circle. He mentioned delays in the process for a revision to the Foreign Investment Promotion Act, which would not require a holding company to secure 100 percent of the stake when establishing a sub-subsidiary, saying “As the National Assembly labeled the revision a special favor given to chaebol (Korean conglomerates), SK Group and LG Group could not afford make investment.”

“The issue that the business community considers the toughest at present is the scope of ordinary pay of workers,” Vice Chairman Lee said. “If the scope of ordinary salary is defined (in a way that includes fixed bonuses in ordinary pay) as the Supreme Court ruled last year, enterprises will face a significantly increased burden” he claimed.

As for economic democratization, he said, “The original goal of the move aiming at correcting unfair trade practice has been distorted, while the campaign has failed to live up to its intentions, adding to the burden on small and medium-sized enterprises.”