South Korea’s business community on Thursday protested proposals by the government to tax corporate cash reserves, stressing that such actions will only hurt investment and not benefit the economy.

The Federation of Korean Industries, which represents the interests of the country’s large family-run conglomerates known as chaebol, said companies need cash reserves to deal with potential uncertainties in the future and that most of the money set aside has already been earmarked for use to buy land and buildings, build plants and purchase production facilities.

The stance comes after newly inaugurated Finance Minister Choi Kyung-hwan berated local conglomerates for stocking up cash excessively, hurting investment that is critical for job creation and sustainable growth. (Yonhap)