Korea’s major business organizations urged politicians Thursday to refrain from making populist pledges to win votes, stressing such moves will hurt the country’s economy in the long run.
The Federation of Korean Industries, the lobby for the country’s family-controlled conglomerates, and four other organizations claimed that resorting to populism poses problems for the country’s fiscal health and can seriously affect economic growth potential.
“There is a rush by politicians and some civic groups to appeal to voters ahead of the parliamentary and presidential elections,” the groups said in a joint statement. “Campaign pledges should be tailored to reflect the current economic environment facing the country and the government’s fiscal capabilities.”
The statement was made by the FKI, the Korea Chamber of Commerce and Industry, the Korea Federation of Small and Medium Business, the Korea Employers Federation and the Korea International Trade Association.
The organizations also raised concerns that moves by some politicians to bash all businesses as the root of inequality in the country will adversely sap entrepreneurial spirits, investments and limit job creation.
On the public uproar surrounding South Korea’s free trade agreement with the United States, the business organizations said politicians should not try to link politics with economics.
They said the FTA with Washington that went into effect on March 15 should be viewed in the same context as the other free trade pacts signed and ratified by Seoul in the past. South Korea currently has eight open trade pacts with 45 countries that make up the bulk of its trade.
(Yonhap News)
