Deputy Prime Minister and Finance Minister Hyun Oh-seok said Tuesday that excessive regulatory enforcement against the private sector would hamper business growth and thus the economy.
In a meeting with the chiefs of the Fair Trade Commission, the National Tax Service and the Korea Customs Service on Tuesday, Hyun cautioned that too much regulation could send a wrong message to the market as if the administration is out to get every company.
FTC chairman Noh Dae-lae, NTS chief Kim Duk-joong and KCS commissioner Baek Un-chan sat down with Hyun for talks on their latest policy development.
Curbing the underground economy and promoting fair business practice through tax justification and the economic democratization policy to keep the market in order is a righteous thing to do, Hyun said, but called for a balanced action where market intervention that can also revitalize the economy.
The deputy prime minister added that the regulatory agencies should also listen and keep in mind of the private sector’s concerns and needs while implementing their policies and enforcing regulations.
This is a delicate time not to trigger misunderstanding between the government and companies as the country needs to improve both business and investor confidence to boost the economy in the latter half of this year, Hyun said.
Korea aims to break free from its long period of low growth in the second half of 2013 on the back of its fiscal and monetary stimulus. The finance minister told the Strategy and Finance Committee of the National Assembly on Monday that Korea can grow 3 percent in the second half and reach the traditional growth of 4 percent next year.
Hyun urged the FTC, the NTS and the KCS to be prudent and ensure that “no side effects” occur when they impose tougher sanctions and other disciplinary measures against those found to have violated laws.
The Bank of Korea Gov. Kim Choong-soo also said that regulations should not get in the way of businesses coming up with new innovative ideas for growth.
In a meeting with executives of small and medium enterprises on Tuesday, the governor stressed that the government and the central bank should facilitate the needs of SMEs so that they develop better technologies and secure better human resources.
Korea has been promoting various policies to support SMEs and promote a level playing field in the market where conglomerates and their smaller counterparts could mutually grow together.
The government also seeks to expand welfare for the middle class through its 134.8 trillion won ($119.3 billion) spending plan over the next five years.
The NTS and the KCS are clamping down on tax evasion and black market activity to help the administration secure 50.7 trillion won. The rest of its 134.8 trillion won budget will be allocated through state expenditure cuts.
By Park Hyong-ki (
hkp@heraldcorp.com)
