Choi Jin-sik, chairman of the Korea Mid-Sized Enterprises Federation, called on National Assembly Speaker Cho Jung-sik to improve laws and regulations so that companies can feel more rewarded by growth. Among the measures cited were raising income tax brackets and widening the limits on stock acquisitions and holdings by charitable foundations.
The federation said on the 20th that Choi and its senior vice chairmen had paid a courtesy call on Cho on the 19th. Referring to Cho's opening address to the regular parliamentary session last month, in which the speaker said the warmth of growth should spread evenly, Choi said: "For that to happen, sufficient growth is essential, so we ask the National Assembly to actively support companies in responding effectively to rapid changes in the domestic and external environment."
Choi went on to say: "To broaden social consensus on the value of growth, it is important that people have occasions to feel it in practice. Gross domestic product has more than doubled since 2008, yet income tax brackets have remained unchanged. Raising them would offer a better outlook on life and elevate the value of labor."
He added: "As an effective way for companies to fulfill their social responsibilities, various measures to heighten the sense that growth pays off should be actively explored, including widening the limits on stock acquisitions and holdings by charitable foundations."
Cho said: "Mid-sized enterprises are the backbone of the South Korean economy and, as drivers of innovation-led growth, play a pivotal role in our economy. We will gather a wide range of views from businesses and labor on key issues such as business succession, securing talent and working hours, and will provide institutional support through steps including an amendment to the Mid-Sized Enterprises Act."
Also attending the meeting were Koo Ja-kwan, managing representative partner of Samgu I&C; Cho Si-young, chairman of Daechang (012800); Choi Myung-bae, chairman of YC (232140); and Kim Hyun-chul, standing vice chairman of the federation.