The Democratic Party of Korea and the government have formalized their efforts to reorganize regulations that do not conform to global standards and excessive economic penalties. To enhance corporate vitality and boost growth potential, they plan to discuss including the easing of embezzlement penalties. The party and government agreed to prepare the new administration's economic growth strategy with four key pillars: technological innovation, inclusive growth, fair competition, and strengthening a sustainable foundation.
Chairperson Han Jung-ae of the Democratic Party of Korea discussed the 'new government economic growth strategy' at the National Assembly on the morning of that day.
Chairperson Han noted, 'The party and government collectively recognized that our economy is facing a serious situation where potential growth rates are rapidly declining amid harsh external conditions such as protectionism and trade.' She stated, 'The government has decided to prepare the new government's economic growth strategy under four policy directions: leading technological growth, growth for all, fair growth, and strengthening the foundation for sustainable growth.'
The most noteworthy aspect is the strategy to strengthen the foundation for sustainable growth. The party and government have decided to expand the scope of application of the stewardship code to induce improvements in corporate governance and promote productive finance.
In particular, they have agreed to rationalize regulations that do not meet global standards and excessive economic penalties such as 'embezzlement crime.' The Democratic Party also plans to launch its own task force (TF) to actively promote relevant legislation in cooperation with the government.
Chairperson Han explained, 'We have made many amendments to the Commercial Act regarding improvements in governance structure, and there is an opinion within the party that we need to supplement the embezzlement crime section.' She added, 'We will create a TF to discuss such matters.'
The party and government's inclusion of regulatory easing and rationalization of economic penalties in their growth strategy indicates an effort to enhance corporate vitality. They have established a clear policy to consistently pursue legislation on amendments to Articles 2 and 3 of the Trade Union and Labor Relations Adjustment Act, which the business community has opposed, while also pushing for regulatory easing and measures to alleviate burdens related to embezzlement crime as a 'carrot.'
President Yoon also stated earlier on the 30th of last month, 'I will promptly activate the government's economic penalty rationalization TF to prevent excessive economic penalties from stifling corporate management activities.' On the 19th, he emphasized that 'we need to align our efforts to abolish corporate regulations or ease the penalties related to embezzlement crime.'
The party and government will launch a full-scale initiative for an AI transformation across all industries in the field of leading technological growth. This aims to accelerate digital transformation and create a new industrial ecosystem to enhance productivity. The government plans to expand the opening of public data, select key projects in advanced new industries, and provide concentrated support for finances, taxes, financing, and human resources as a package. In this process, the party plans to actively support relevant legislation on public data opening.
To achieve 'growth for all,' they will promote a balanced regional strategy while enhancing support for vulnerable groups. First, they plan to establish a 'K-Regional Tourism Total Package' to boost regional tourism, and they have decided to expand the special account for balanced development to over 10 trillion won. Additionally, they have shifted from individual project-based subsidies to a comprehensive subsidy system to allow local governments to autonomously prioritize their investments.
Additionally, to support small businesses, they will raise the contribution limit for the Yellow Umbrella Fund and are reviewing the expansion of the 1,000 won breakfast program aimed at university students and young people.
The fair growth sector has focused on reducing unfair trading practices to establish a sustainable growth base for small and medium-sized enterprises. The party has widened the application of the linked payment system to eliminate unfair trading and has requested an expansion of the scope of the Industrial Safety and Health Act to eradicate industrial accidents. The government has also decided to promptly promote related policies.
The government plans to finalize the new government's economic growth strategy soon and disclose specific tasks. The Democratic Party intends to process legislative tasks that require urgency promptly.