After an unbelieveably close race, Yoon, the Opposition candidate, was elected South Korea’s next president. He now faces a daunting task of narrowing those chasms.
The Federation of Korean Industries (FKI), Korea Chamber of Commerce and Industry, and Korea International Trade Associations (KITA) called the country’s business lobbies. They believe the new government’s leadership will be the key to addressing sluggish local consumption and low birthrates as well as the aging population.
“Yoon’s victory represents the nation’s wish (for the incoming government) to end the COVID-19 pandemic, bring back justice and commonsense to the society,” stated the FKI in a statement.
FKI also asked Yoon for more flexibility in the labor market and easing regulations to allow the private sector to lead the country’s economic development.
Yoon criticised President Moon Jaein for encouraging state-led growth. He stated that the private sector and innovation should lead the economic paradigm change and not the government’s debt-incurring spending.
Lobby groups also cited Russia’s invasion of Ukraine, trade disputes between China and America, and rapid technological development known as the Fourth Industrial Revolution as reasons for growing uncertainties for businesses.
KITA requested the Yoon government take preemptive measures in response to the carbon neutral era, and to protect local exporters in the face of growing protectionism from major trading partners like the US and China.
Yoon is expected seek out expansionary fiscal spending to support the recovery of the economy and businesses affected by the pandemic.
Yoon promised to spend approximately 50 trillion won ($40.6 million) to compensate small merchants who suffered losses due to antivirus restrictions.
Yoon’s compensation plan will likely be funded by another budget that the new government, due to take effect on May 10, will likely be created by the new government.
Yoon stated that he will cut unnecessary spending and use tax revenue as a means to finance his spending plans. However, the support is so large that it would be unavoidable for the new government not to sell debt. (Yonhap)
