The Federation of Korean Industries (FKI), a major business lobby group in South Korea, on Tuesday urged the government to provide more support to businesses as they struggle from a worsened environment such as weak sales and inventory buildup.

The proposal was made in a meeting between businesses and Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho at the FKI building in Yeouido, Seoul.

The meeting was held as the government intends to hear the voices of the business circle to improve the economy in the second half of the year. It was attended by six officials from the Economy Ministry and 17 chief executive officers of the top four conglomerates Samsung, SK, Hyundai Motor, and LG, and FKI chairmanship.

The businesses stressed the growing need for more support from the government to facilitate their capacity to overcome harsher business conditions in the face of the global economic recession, such as weaker exports, sluggish sales, and mounting inventory.

The prospective solutions mentioned include broader tax benefits for research and development, policy measures for them to focus on carbon neutrality, and enhanced support on national strategic technologies.

“The role of the private sector and the market is very important for our economy to achieve quick and strong recovery,” Choo said.

He urged the companies to carry out aggressive investments and establish key capacity that leads the global market to expand exports.

Choo also vowed that the government will do its role by improving regulations and providing tax support to create a business-friendly environment.

“Joint efforts between the government and business community can make things better,” Choo said.

The minister underscored that exports and investment serve as pillars of the economy, noting that he expects the tax incentives from the government to be investment opportunities for enterprises with forward-looking visions.

By Pulse

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