President Moon Jae-in on Friday said that the government will seek ways to give social enterprises more access to state projects and offer smaller shipbuilders financial aid.

The measures were included in Moon’s second and final round of talks with South Korea’s business leaders. 



The businessmen who attended Friday’s meeting were Korean Air President Cho Won-tae, Hyundai Heavy Industries Chairman Choi Gil-seon, Samsung Electronics Vice Chairman Kwon Oh-hyun, SK Group Chairman Chey Tae-won, Korea Chamber of Commerce and Industry Chairman Park Yong-mann, GS Group Chairman Huh Chang-soo, Lotte Group Chairman Shin Dong-bin and KT Chairman Hwang Chang-kyu.

“The government has announced 100 tasks and its economic policy direction, and the economic paradigm must be changed to one focused on the people, jobs and income-led growth,” Moon was quoted as saying by Cheong Wa Dae spokesman Park Soo-hyun.

“(I am) well aware that there are concerns that the burden on companies and the economy will grow. However, there is no other way to revive the economy,” Moon said, according to Park.

“(I) request business leaders to share the new government’s economic ideals and to work together to achieve the goals. Corporations contribute to the national economy, and the government aids businesses through policies -- the government and corporations are partners.”

Following Moon’s remarks, SK Group’s Chey requested the government to give social enterprises wider access to public procurement projects and highlighted the group’s efforts to aid smaller companies.

The KT chairman followed with a suggestion of a project designed to nurture talent for the “fourth industrial revolution,” which would be funded by the government and corporations.

While the majority of the businessmen in attendance focused on their companies’ projects that fall in line with Moon’s economic goals, GS Group’s Huh touched on the issue of tax rates.

“(The group) has endeavored to create jobs and to pay lots of taxes, and will continue to do so. (I) request that the government actively support the corporations,” Huh said, in an apparent reference to the proposed hike in corporate tax rates.

While the government has taken a back seat on the issue, the ruling Democratic Party of Korea has proposed to raise the tax rate on the highest earning companies.

Regarding the ailing shipbuilding industry, Moon said that the government will roll out measures to support the sector until conditions improve.

“It is projected that the industry will see improving conditions from 2019, but until then the government will consider buoying demand through public contracts” Moon said in response to related comments from HHI’s Choi.

According to the Cheong Wa Dae spokesman, Moon ordered government officials present at the meeting to develop measures to provide smaller shipyards with financial support.

By Choi He-suk (cheesuk@heraldcorp.com)