[fn Editorial] Promise to Reduce Corporate Regulations and Penalties, Should Not Become 'The Boy Who Cried Wolf'

The government and the ruling party held a 'New Government Economic Growth Strategy Party-Government Consultation' on the 20th and decided to form their own task force (TF) and promote related legislation to rationalize regulations and excessive economic penalties that do not meet global standards. It seems to be intended to dispel the business community's concerns, which have reached their peak as the ruling party announced the handling of the Yellow Envelope Act and the 2nd Commercial Act amendment within this month.

The ruling party, which holds legislative power, is embarking on the relaxation or abolition of the breach of trust crime and the dismantling of spider web regulations that have been persistently demanded by the business community, which is a welcome development.

However, there is concern that this will again become a false hope. Every time, when things are disappointing, they call in the companies and say, "We are always on your side, so don't worry too much," and then turn around and push forward with laws that tighten the noose on companies, making the government's true intentions confusing. If such things become routine, it will be difficult for the government to gain trust.

President Lee Jaemyung, shortly after taking office, held a meeting with the heads of the top 5 groups and the heads of 6 economic organizations on June 5, saying, "The most important thing is the people's livelihood," and "The core of that is the economy, and the core of the economy is the company."

Last month, President Lee instructed a 30% reduction in economic penalties that stifle corporate activities, such as the breach of trust crime. On the 19th, President Lee again met with business leaders and emphasized, "We need to discuss the abolition of corporate regulations and the relaxation of the breach of trust crime."

Currently, companies are in a state of isolation. The labor community frequently goes on strike, and the ruling party is determined to push forward with laws that pressure companies. The only thing they can rely on is the government, but despite saying they will support them, there is no news. They should not speak with a forked tongue. It's like offering a carrot with one hand and holding a stick with the other.

To gain trust in policy, there must be consistency. If the words in front and behind are different, the listener will be confused about which is true.

The current situation of companies is exactly like that. The business community's desperate plea to withdraw or relax the Yellow Envelope Act is ignored, while on the other side, they claim to be on the side of companies. Who would believe that?

The government's position, knowing the importance of companies and unable to ignore the labor unions, is rather pitiful. In this case, they should implement policies that consider only one side to prevent market confusion. We hope they will listen to the voices asking to reconsider the Yellow Envelope Act legislation once again until the end.

Corporate performance is on a downward trend. According to CEO Score, the operating profit of the top 500 mid-sized companies in the first half of the year decreased by 4.1% compared to the previous year. Half of the surveyed companies saw their operating profits shrink, and many have turned into deficits.

The government should no longer just offer a feast of words packaged as pro-business and should show concrete actions like the abolition of the breach of trust crime. Only then will companies trust the government and step forward to make money for the country.