Korea's new economic team meets six business groups, pledges field-driven policy
In short
Deputy Prime Minister and Finance Minister Lee Hyung-il met representatives of six economic organisations on Oct 7 at the Korea Chamber of Commerce and Industry in Seoul, in his first such meeting since taking office. Lee said policy should start from companies' on-site concerns, and business groups asked for faster permits and infrastructure timed to their investment schedules.
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Deputy Prime Minister and Minister of Economy and Finance Lee Hyung-il met representatives of six economic organisations at 10:00 on Oct 7 at the Korea Chamber of Commerce and Industry in Seoul, the finance ministry said. The gathering combined a meeting with the six economic groups and the sixth meeting of the public-private consultative body for corporate innovation support. [ 1 , 3 , 5 ]
Those attending included KCCI chairman Choi Tae-won, Korea Economic Association chairman Ryu Jin, KBIZ chairman Kim Ki-moon, KITA chairman Yoon Jin-sik, Korea Medium Enterprise Association chairman Choi Jin-sik and KEF standing vice chairman Lee Dong-geun. Asia Economy reported the meeting was Lee's first with the six groups since taking office and the first with business since the new economic team took office. [ 3 , 5 , 6 , 8 ]
Lee said that “real change felt by companies starts from voices in the field” and that policy can lead to real results when government and the private sector consider problems and seek solutions together on site. He pointed to recent government measures taken on the basis of company requests: allowing integrated ordering of electricity and telecommunications works when building semiconductor fabs, and shortening administrative procedures for converting combustion-engine car plants to electric-vehicle production. [ 5 , 6 ]
On the economy, Lee said growth is expanding on the back of a global semiconductor boom despite difficult conditions, while price and livelihood burdens persist. He cited a shrinking working-age population, stagnating productivity, a falling potential growth rate and polarisation between sectors as structural problems that remain, and said the government would strengthen policy efforts to lift potential growth and ease polarisation, pursue large-scale future investment through three major megaprojects and remove on-site obstacles to corporate investment. [ 5 ]
He also said the government would mobilise available resources and policy tools in three core social policy areas — housing, jobs and financial support for ordinary people — with particular emphasis on support for young people. [ 5 ]
Business representatives asked the government to cooperate so that permits, infrastructure and needed support proceed quickly in line with companies' investment schedules. They said tailored artificial intelligence support for SMEs was needed to narrow the gap between large and smaller firms, and on extending the retirement age proposed a flexible approach that uses older workers' accumulated experience through re-employment while securing job opportunities for young people. [ 5 ]
The groups said they hoped the launch of the new economic team would open a year of rebound in growth and that they would convey voices from the field through the public-private consultative body. [ 5 ]
Why it matters
The meeting is the first between the new economic team and the country's main business lobbies, and it sets out the government's stated priorities: potential growth, support for SMEs and youth-focused social policy. The requests raised by the groups — faster permits, tailored AI support for smaller firms and a flexible approach to retirement age — indicate the issues likely to shape corporate policy in the coming months.
Key facts
- Lee Hyung-il, deputy prime minister and minister of economy and finance, met the heads of six economic organisations at 10:00 on Oct 7 at the Korea Chamber of Commerce and Industry in Seoul. [ 1 , 5 ]
- The gathering was held as a meeting with the six economic groups and the sixth meeting of the public-private consultative body for corporate innovation support. [ 1 , 3 , 5 ]
- Attendees included KCCI chairman Choi Tae-won, Korea Economic Association chairman Ryu Jin, KBIZ chairman Kim Ki-moon, KITA chairman Yoon Jin-sik, Korea Medium Enterprise Association chairman Choi Jin-sik and KEF standing vice chairman Lee Dong-geun. [ 3 , 5 , 8 ]
- Asia Economy reported it was Lee's first meeting with the six economic groups since taking office and the first with business since the new economic team took office. [ 6 ]
- Lee said real change felt by companies starts from voices in the field and that policy can deliver results when government and the private sector look for solutions together. [ 5 , 6 ]
- Lee said the government had recently allowed integrated ordering of electricity and telecommunications works for semiconductor fab construction and shortened administrative procedures for converting combustion-engine car plants to electric-vehicle production. [ 5 ]
- Lee said the economy is expanding on the back of a global semiconductor boom while price and livelihood burdens persist, and cited a shrinking working-age population, stagnating productivity, falling potential growth and polarisation as remaining structural problems. [ 5 ]
- Business representatives asked the government to handle permits, infrastructure and needed support quickly in line with investment schedules, called for tailored AI support for SMEs, and proposed flexible use of older workers' experience while securing youth jobs. [ 5 ]
Confirmed by several sources
- Lee Hyung-il met representatives of six economic organisations on Oct 7 at the Korea Chamber of Commerce and Industry in Seoul. [ 1 , 3 , 5 , 8 ]
- The KCCI chairman, the Korea Economic Association chairman, the KBIZ chairman, the KITA chairman, the Korea Medium Enterprise Association chairman and the KEF standing vice chairman attended. [ 3 , 5 , 8 ]
- Lee said companies' felt change starts from field voices and that government and the private sector should find solutions together. [ 5 , 6 ]
Still unclear
- The documents do not report any decision, agreement or follow-up measure reached at the meeting. All accounts describe remarks and requests only; no outcome is stated.
- Whether the three core social policy areas — housing, jobs and financial support for ordinary people — were discussed at this meeting or at a separate economic affairs meeting. The finance ministry notice describes a separate economic affairs meeting with ministry ministers and the presidential policy chief on those three areas, while Yonhap attributes Lee's remarks on the same three areas to this meeting.
- How the government responded to the business groups' requests on permits, AI support for SMEs and retirement age. Only the requests are reported, in a single document, with no government reply stated.
What local media are saying
Timeline, local time
- Lee Hyung-il opens the meeting with the six economic groups and the public-private consultative body at the Korea Chamber of Commerce and Industry in Seoul. [ 1 , 5 ]
- Yonhap and Asia Economy publish reports and photographs of the meeting. [ 3 , 4 , 5 ]
- Newsis publishes a field report describing the business groups' requests to the new economic team. [ 8 ]