Business groups call for bipartisan efforts on deregulation from new parliament

The Korea Chamber of Commerce and Industry urged the incoming National Assembly to defy partisanship and pass bills related to deregulation and the public's livelihoods.

Leaders of business associations hold a press conference to oppose to a bill on labor union in 2023. [JANG JIN-YOUNG]

Korea’s major business and trade associations have called on the incoming parliament to zero in on deregulation and boosting exports to propel the economy forward.

The Korea Chamber of Commerce and Industry (KCCI), one of the largest lobbying groups in the country, raised the need for compromises in the legislature and suggested that lawmakers cooperate to pass bills essential to the growth of livelihoods and the economy, as the current National Assembly often remains embroiled in partisan deadlock that leaves many related bills in limbo.

"We hope that the 22nd National Assembly will reform regulations that stand in the way of corporate activities for innovation, and demonstrate leadership in bringing together the private and public sectors to resolve problems facing the country,” the KCCI said in a statement released on Election Day on Wednesday.

The association said that the top policy priority should be centered around the improvement of livelihoods, citing its survey of 12,000 people.

Of those polled, 33.6 percent were most concerned about livelihoods, followed by the low birthrate at 22.7 percent.

The Federation of Korean Industries (FKI) also stressed bipartisanship for the sake of the economy to navigate a multitude of challenges, including U.S.-China tensions, the low birthrate and tepid potential economic growth.

“We hold an expectation that the 22nd National Assembly will display bipartisan efforts to weather the challenges and make a leap forward,” the FKI said in a statement, adding deregulation and an enhancement of the corporate environment to its list of requests.

The Korea Enterprises Federation brought up the issue of labor reform concerning the adoption of flexible workweek hours and a relaxation of labor market rigidity.

"To reinforce competitiveness of our labor market on the global stage, the National Assembly should be at the forefront of labor reform,” the association said in a statement.

Another area of focus was exports, Korea’s economic backbone.

"The trade industry hopes that the 22nd National Assembly will raise the competence of exports to become the fifth largest exporter in the world,” the Korea International Trade Association stated, adding that the agenda concerning outgoing trade should go beyond the interests of each party.

Following a prolonged slump, exports finally rebounded in March on the back of robust chip demand.

Last month's exports rose 3.1 percent from a year earlier to reach $56.5 billion, according to data from the Ministry of Trade, Industry and Energy.

The gain was helped by outbound chip shipments, which came to $11.7 billion, an on-year increase of 35.7 percent. It was the best performance by value in two years, and the fifth consecutive month of gains, attributed to increased demand for AI chips.

Still, rising prices remain a concern, which hold back consumer spending and hamper a possible interest rate cut, which is needed to stimulate the economy.

Korea’s inflation grew more than 3 percent for the second straight month in March, driven largely by the prices of agricultural products.

Consumer prices, a key gauge of inflation, gained 3.1 percent from a year earlier, according to data from Statistics Korea. The on-year figure stayed unchanged from February after coming in at 2.8 percent in January.

BY PARK EUN-JEE [park.eunjee@joongang.co.kr]