Choi Tae-won: "Without Lifting Regulations on Large Corporations, There Will Be No Further Growth"

[Financial News] Choi Tae-won, Chairman of the Korea Chamber of Commerce and Industry and Chairman of SK Group, stated on the 4th, "If regulations by company size are not lifted, further economic growth will not occur." He directly addressed the reality where government regulations such as corporate law are concentrated on large corporations with 'assets of 2 trillion won or more', leading to the so-called 'Peter Pan Syndrome' where medium and small enterprises refuse to grow into large corporations. 
Chairman Choi emphasized again in his keynote speech at the 'Corporate Growth Forum Launch Ceremony' jointly hosted by the Korea Chamber of Commerce and Industry, Korea Economic Association, and Korea Medium Enterprise Association at the Lotte Hotel in Jung-gu, Seoul, that "the wall of regulations must be removed for growth momentum to continue." He said, "As long as regulations exist, it is considered advantageous to remain a small enterprise, and companies do not intentionally increase their size by splitting them." He pointed out, "There is a '2 trillion won hurdle' under the current corporate law, and a company with assets of 1.9 trillion won will never try to increase its assets further to avoid the regulatory net." According to the 'Differential Regulation Survey' results announced by the Korea Chamber of Commerce and Industry and Professor Kim Young-joo's research team from Busan National University, there are 343 differential regulations by company in 12 economic-related bills, and the number of economic penalty-related clauses reaches a whopping 6,000. Chairman Choi said, "The stepwise regulations in the Korean economy are a fundamental reason for stagnation in Korea's growth, especially reducing the vitality of the private sector," adding, "(These stepwise regulations) were correct in the past but are wrong now." He requested an assessment of the industrial impact of stepwise regulations and exceptions for advanced industrial sectors in enforcement ordinances and rules.
On this day, major domestic companies targeted the 'large corporation squeezing' regulatory policy, saying, "In the US or Europe, regulations are not operated by such standards." Park Seung-hee, head of Samsung Electronics' CR division, emphasized in a closed meeting held that day, "As large corporations like Samsung compete globally overseas, support measures that do not consider size are needed now." Park said, "Most of the regulations on large corporations have been formed from a public perspective (public opinion standard)," adding, "These regulations have arisen in the dichotomous relationship of large corporations versus small enterprises, large corporations versus workers, and it is necessary to refer to the regulatory policies of advanced countries such as the US or Europe." 
Lee Hyung-hee, Chairman of the SK Supex Council (President), also suggested as a regulatory improvement measure, "There is a need to align with global standards so that corporate activities can be predictable."
Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol, who attended the event, responded, "As both small and large enterprises are in an emergency situation, the government plans to mobilize all capabilities to support companies so that they can win in fierce global competition." In addition to Chairman Choi and Deputy Prime Minister Koo, more than 30 people attended, including Kim Chang-beom, Executive Vice Chairman of the Korea Economic Association, Lee Ho-jun, Executive Vice Chairman of the Medium Enterprise Association, Kim Young-hoon, Minister of Employment and Labor, Moon Shin-hak, First Vice Minister of the Ministry of Trade, Industry and Energy, Choi Ki-sang, Deputy Chief of Social Affairs of the Democratic Party's Policy Committee, Kim Eun-hye, Deputy Chief of Policy of the People's Power Party, Yang Jong-hee, Chairman of KB Financial Group, Jin Ok-dong, Chairman of Shinhan Financial Group, Ham Young-joo, Chairman of Hana Financial Group, and Lim Jong-ryong, Chairman of Woori Financial Group. 
ehcho@fnnews.com Cho Eun-hyo, Kwon Jun-ho, Park Moon-soo reporters