[fn Editorial] 'Companies as the Center of the Economy' Should Be Shown Through Action, Not Just Words

The government growth strategy task force (TF) chaired by the Deputy Prime Minister officially started with its first meeting on the 5th. Deputy Prime Minister Gu Yoon-cheol, who is also the Minister of Strategy and Finance, stated, "Companies are truly the center of Korea's growth," and promised to provide full support so that companies can achieve global No. 1 competitiveness. The Growth Strategy TF is an organization that succeeded the emergency economic TF directly chaired by the President. It is said that the government will design and establish detailed plans for mid- to long-term growth strategies here.

Deputy Prime Minister Gu repeatedly emphasized company-centered growth. He raised his voice, saying that the next five years are a golden time to transform into a super-innovative economy for Korea, and urged the public and private sectors to join forces. To this end, he promised that if economic entities agree on super-innovative technology items, the government will spare no financial and tax support.

Discussions also continued on improving the economic punishment rationalization system to alleviate corporate burdens. The meeting was attended by Choi Tae-won, Chairman of the Korea Chamber of Commerce and Industry, and other heads of six economic organizations, who put their heads together with ministers and vice-ministers of related ministries. It is obvious that the public and private sectors must unite tightly to overcome the economic crisis. The key is ultimately the government's practical actions. Instead of just putting companies at the forefront with words, they must show their willingness to act through concrete policies and legislation.

Our economy is now experiencing a rapid decline in social vitality as the growth engine is turned off and the number of young people with nowhere to go is increasing. Domestic and foreign institutions have successively lowered Korea's growth rate forecast for this year to the 0% range. Although the tariff negotiations have passed a major hurdle, uncertainties remain in detail. With 15% mutual tariffs and industry-specific item tariffs, exports are inevitably facing significant damage. The hollowing out of domestic industries due to companies' overseas investments is also a pressing issue. The new trade order from the United States could shake the foundation of domestic industries. This is also why the government emphasizes growth.

As anxious companies reduce new hiring, even generational reversal phenomena are appearing in workplaces. The proportion of those in their 20s, who can be said to be the future of the company, has become less than those in their 50s. According to a management report released by the corporate analysis institute Leaders Index on this day, the proportion of under-30 employees in the top 500 companies fell below 20% for the first time last year. On the other hand, those aged 50 and over increased from the previous year, exceeding 20%. Jobs for young people are a critical measure of growth expectations. The focus of the Growth Strategy TF should also be on corporate jobs.

The government should first prepare a list of actions to support company-centered growth. Chairman Choi said, "Please design a system that guarantees the activities, freedom, and creativity of companies, which are the main players in growth." In this regard, laws that hinder companies should be reconsidered. This includes additional amendments to the Commercial Act, which contains a concentrated voting system that threatens corporate management rights, and the Yellow Envelope Act, which could lead to endless damage compensation lawsuits.

It is also necessary to heed the criticism that regulatory improvements are urgently needed as companies grow. On this day, three organizations—the Korea Chamber of Commerce and Industry, the Federation of Korean Industries, and the Korea Federation of SMEs—formed a 'Growth-Oriented Corporate Ecosystem TF' and requested regulatory reforms that hinder high growth of companies. Encouraging and rewarding corporate growth is normal, but our reality is the opposite. Frequent corporate breakups and the 'Peter Pan syndrome' that does not aim for growth are also for this reason. Regulatory improvements for companies have ended up as mere words in every government. It must change now. If growth is genuinely desired, policies appropriate for growth should be implemented.