The business community is facing multiple challenges, including sluggish domestic demand, deteriorating trade conditions, and the impact of the impeachment crisis. As financial market risks, such as exchange rates and stock prices, intensify, the burden of legislative processing is increasing. Concerns have also been raised that the government's diplomatic and administrative functions may be paralyzed, potentially disrupting overseas operations.
According to the business community, an economic organization meeting will be held at the National Assembly on the 17th at the invitation of Speaker Woo Won-shik. Choi Tae-won, chairman of the Korea Chamber of Commerce and Industry, Yoon Jin-sik, chairman of the Korea International Trade Association, and Son Kyung-sik, chairman of the Korea Enterprises Federation, are expected to attend, intending to raise issues faced by corporations and request legislative support.
As the impeachment motion against President Yoon Suk-yeol was passed, the business community has pushed for the legislation of so-called 'non-contentious bills,' with no disagreements between political parties. Among the 23 legislative tasks proposed by the Korea Chamber of Commerce and Industry to the National Assembly last October, 12 bills are currently pending, including the semiconductor special law, artificial intelligence special law, and advanced strategic industry fund law.
Concerns are also growing about the enforcement of laws that are against the market and corporations. With the president's veto power effectively rendered powerless, there is a possibility that opposition parties will push through bills that restrict business activities. The business community is closely watching a proposed amendment to the commercial law that would expand the duty of care for directors from the current focus on the corporation to include the company and shareholders.
Corporations have been on high alert regarding market instability since the state of emergency. As volatility in the foreign exchange and stock markets increases, it could adversely affect financial conditions. In particular, the rise in the won-dollar exchange rate could lead to increased raw material import expenses, burdens from overseas investments, and a decline in external credit, negatively impacting exports.
With the inauguration of Donald Trump's second administration approaching next year, the won-dollar exchange rate, which had been exhibiting a strong dollar trend, is currently in the mid-1400 won range. After the election of former President Trump in last month's U.S. elections, the exchange rate surpassed 1,410 won for the first time in over two years, and shortly after the state of emergency, it approached 1,440 won, setting a new high in two years and two months.
There is speculation that the impeachment fallout may hinder proper economic and trade diplomacy. As the inauguration of Trump's second administration is scheduled for January next year, the weakening of negotiation power regarding trade with the U.S. is likely to sustain concerns about tariffs and the Inflation Reduction Act (IRA) for some time.
Major corporations such as Samsung, SK, and Hyundai Motor are expected to maintain a conservative management strategy until the first half of next year. According to the Korea Economic Association on the 3rd, among the top 500 corporations by revenue, 56.6% have not yet established investment plans for next year, while 11.4% do not have any investment plans.