Sohn Kyung-shik, chairman of the Korea Enterprises Federation, said ahead of 2026 that he hopes the year will be a golden time for our economy to move past crisis, achieve a great transition, and make a fresh leap forward.
On the 29th, in a New Year's address, Sohn said, "As artificial intelligence (AI) technology is rapidly transforming industrial structures across the board, countries around the world are rushing out support measures for their own corporations to secure cutting-edge technology."
Sohn emphasized, "To survive in global competition, it is essential to create a dynamic management environment that can encourage corporations' innovation and willingness to take on challenges."
First, he said rigid labor market regulations must be resolved. Sohn said, "In Korea's labor market, it is difficult to respond quickly to changes in industrial structure, and productivity is lower than in competitor nations," adding, "We should broadly recognize diverse production methods and improve working hours flexibly to suit the characteristics of each job, moving away from uniform regulation."
He said research and development in advanced industries should be set in an environment where work hours do not constrain personnel and capabilities can be fully exercised, and that to raise productivity and secure talent, the wage system should be changed from seniority-based to a fair compensation system that reflects job value and performance. He noted, "Only by increasing the flexibility of the labor market can we find a win-win solution to the issue of extending the retirement age that does not clash with youth jobs."
He also cited the modernization of labor-management relations as an urgent task. Sohn said, "We must now correct our labor-management relations, which are at the world's lowest level and are a stumbling block to national competitiveness," adding, "In terms of laws and systems, corporations lack means of response compared with unions' authority, which is a major cause of labor-management conflict. As in competitor nations, we must guarantee corporations' right to counter reasonably to unions so that the balance of labor-management relations can be restored."
He also expressed concern about the revised Trade Union and Labor Relations Adjustment Act set to take effect in March next year. Through this, the scope of employers and the concept of labor disputes will be expanded, and Sohn said, "Many corporations are deeply concerned about the law's ambiguity and the fallout after implementation," adding, "We ask the government and the National Assembly to fully gather corporations' views and do their utmost to prepare measures that minimize confusion at worksites."
Sohn urged, "Bold economic policies are also needed to boost the spirit of corporations and to spur investment and innovation in advanced fields such as AI, semiconductors, and robots," adding, "Unnecessary regulations should be boldly removed, and taxes should be administered from the perspective of enhancing national competitiveness, rather than being subject to political and ideological disputes."