Korean business group submits 119 policy requests, led by a physical AI support law
In short
The Federation of Korean Industries (한국경제인협회) said on 22 October it has submitted its "2027 Business Community Policy Opinion Paper" to the government and National Assembly. It lists 119 requests in 10 areas, including a law to support physical AI, a larger space budget and state help with petrochemical plant demolition costs.
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The Federation of Korean Industries (한국경제인협회) said on 22 October that it had submitted its "2027 Business Community Policy Opinion Paper" to the government and the National Assembly. Yonhap and Electronic Times said the paper was drawn up after gathering views from companies. The paper contains 119 requests in 10 areas, among them the AI transformation, advanced and energy industries, corporate rules and the labour market. Asia Economy said the paper was submitted on 19 and 20 October. [ 1 , 2 , 3 ]
The federation put a law to support physical AI first. It said the legal framework is now split across AI, robots, autonomous driving and drones, and asked for an umbrella law. Its proposals include designating pilot zones, building a performance certification system and special provisions for using personal and image data. Asia Economy added that China and Japan are moving quickly on public data and demonstration sites through local ordinances and national strategies. Electronic Times reported that the federation urged passage within the year of the special act on promoting and supporting physical AI development that is pending in the National Assembly. The act would set up a committee chaired by the prime minister and ease rules in pilot areas. [ 1 , 2 , 3 ]
The paper contains 11 AI and digital items, according to Electronic Times. They include tax credits for AI data centres in the Seoul metropolitan overcrowding control zone. The federation said about 74.8% of private data centres are in the capital region. It also asked to widen direct power purchase agreements to LNG and district energy operators, and to support mobile networks and new 5G frequencies. [ 3 ]
On space, the federation said Korea's 2024 budget was $600 million, 0.8% of the US figure of $77.3 billion. Asia Economy gave comparison figures of $17.3 billion for China and $4.9 billion for Japan. The federation asked for a larger budget, support for satellite communications, wider transfer of state research institute technology to the private sector and designation of satellite and launch vehicle technologies as national strategic technologies. [ 1 , 2 ]
On petrochemicals, the federation asked for a legal basis to support the demolition and environmental restoration costs of facilities closed in government-led restructuring. Asia Economy said the current special law covers permit simplification and restructuring support but not these costs, and that the federation proposed state funds for part of the demolition cost and preference for firms that develop new businesses on idle sites. [ 1 , 2 ]
On labour, the federation said the scope of bargaining has been unclear since the revised trade union law took effect in March. It asked that investment, staffing and workplace moves linked to plant relocation or construction be excluded from bargaining. It also said the 65-year retirement age extension should let companies choose, for example rehiring after retirement, rather than apply uniformly. On tax, it asked that electric vehicles, biopharmaceuticals, small modular reactors, liquid hydrogen and sustainable aviation fuel be added to the planned domestic production tax credit. [ 1 , 2 ]
Lee Sang-ho (이상호), head of the federation's economic division, said that for private investment and innovation to revive, obstacles at company sites must be removed quickly. He said he hoped business views would be reflected in policymaking by the government and the National Assembly. [ 2 , 3 ]
Why it matters
The paper sets out what a major business group wants in next year's government policy. The documents do not say whether the government or the National Assembly will adopt any of the proposals.
Key facts
- The Federation of Korean Industries said on 22 October that it had submitted the "2027 Business Community Policy Opinion Paper" to the government and the National Assembly. [ 1 , 2 , 3 ]
- The paper contains 119 requests in 10 areas, including the AI transformation, advanced and energy industries, corporate regulation and the labour market. [ 1 , 2 , 3 ]
- It asks for an umbrella law to support physical AI, because related rules are now split across AI, robot, autonomous driving and drone sectors. [ 1 , 2 , 3 ]
- It says Korea's space budget was $600 million in 2024, 0.8% of the US figure of $77.3 billion, and asks for an increase. [ 1 , 2 ]
- It asks for a legal basis to subsidise the demolition and environmental restoration costs of petrochemical facilities closed under government-led restructuring. [ 1 , 2 ]
- It asks that electric vehicles, biopharmaceuticals, small modular reactors, liquid hydrogen and sustainable aviation fuel be added to the planned domestic production tax credit. [ 1 , 2 ]
- Lee Sang-ho (이상호), head of the federation's economic division, said business views should be reflected in policymaking by the government and the National Assembly. [ 2 , 3 ]
Confirmed by several sources
- The Federation of Korean Industries said on 22 October that it had submitted a policy opinion paper with 119 requests to the government and the National Assembly. [ 1 , 2 , 3 ]
- The federation asks for a law consolidating physical AI rules now spread across separate industries, with pilot zones, performance certification and special provisions for using image data. [ 1 , 2 , 3 ]
- The federation says Korea's 2024 space budget of $600 million is 0.8% of the US budget of $77.3 billion, and also asks that satellite and launch vehicle technologies be designated national strategic technologies. [ 1 , 2 ]
- The federation asks for a legal basis to fund demolition and environmental restoration of petrochemical facilities closed in restructuring. [ 1 , 2 ]
- On labour, the federation asks that investment, staffing and workplace transfers tied to plant relocation or construction be excluded from collective bargaining, and that the 65-year retirement age extension allow options such as rehiring after retirement. [ 1 , 2 ]
Still unclear
- Whether the government or the National Assembly will adopt any of the 119 requests. The documents report only the federation's submission and give no response from the government or lawmakers.
- The date of submission. Asia Economy says the paper was submitted on 19 and 20 October, while Yonhap and Electronic Times say only that the federation announced it on 22 October.