SEOGWIPO, Jeju Province -- Amid growing pressure on Korean Inc. to create new jobs, the head of the nation’s largest group representing the interests of businesses reiterated the need to eradicate the barrier of regulations first, stressing that the political fear of big companies monopolizing the market is excessive.

“The fear that large companies have an intention to monopolize the market (when initiating new businesses) and that they would exert an evil influence (on small businesses and startups) seems to be overly large,” said Park Yong-maan, chairman of the Korea Chamber of Commerce and Industry, in a meeting with reporters on Wednesday afternoon. The meeting was held on the sidelines of the KCCI’s 43rd Jeju Forum being held this week.

“I believe that expanding employment would only be possible through the breaking down of regulations. At this time of high youth unemployment, we need companies that can hire them, which would only be possible when there is more to do, more startups opening,” he said.



The comments came as the nation’s economy is reeling from slowing growth, with the government recently revising the growth target this year from 3 percent to 2.9 percent.

Companies, both small and large, have cited heavy regulations as major hurdles for market entry and growth. For instance, South Korea bans sharing-economy-based platforms like Uber and Airbnb, and has strict regulations on businesses’ access to personal data, which have built layers of personal identification process in the online market.

Park said he has been calling for a change in regulations for the past five years, but not much has changed and this deprives businesses of opportunities to create jobs in new industries.

Regarding expectations of South Korean companies making inroads into North Korea as a result of geopolitical changes in the past couple of months, the chairman warned not to be hasty.

“I have expected (denuclearization talks) to take significant time from the start. I believe that it would take around two years for the (relevant parties) to reach a consensus and for the economic sanctions on the North to be removed,” Park said.

“Even if the North reforms and opens (the market), this does not automatically translate into bilateral economic exchanges between the two Koreas. This means countries such as China and Japan will also get the same opportunities, and it would be wrong to think that all we have to do is enter first and mark the territory.”

Park went on to say that he was seeking ways to establish a new communication platform with the North to conduct feasibility studies and discuss ways of establishing a standardized system and protocols before Pyongyang opens its doors.

As for disputes on the government’s drive to raise the minimum wage, Park said the number of companies feeling the pinch over growing labor cost will surge, with the nation’s economy on a downward spiral.

“When we have rosy prospects of the future, (raising the minimum wage) could be acceptable, but with the nation’s economy heading south in a long-term perspective, (small and big companies) can’t help but take a careful approach,” he said.
 
The KCCI’s forum was also attended by South Korean Minister for Commerce and Industry Paik Un-gyu, who said that the minimum wage issue could add pressure on the nation’s labor-intensive industries, such as textile.

Speaking to business leaders on Thursday, Paik said the government is conducting a study on which industry is affected the most from its drive to raise the minimum wage, and vowed to come up with measures to help companies cover the rising cost.

He also raised concerns over the US administration mulling tariffs on foreign vehicles.

If the pact of removing tariffs on auto products falls apart, the free trade agreement between Korea and the US would hold no more significance, he said. “We have to deal with the issue wisely, with the US also opposed to having trouble with the auto sector.”

By Cho Chung-un (christory@heraldcorp.com)