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Korean biz groups launch new forum on revamping regulations

Published: 04 Sep. 2025, 15:47 Updated: 04 Sep. 2025, 16:04

SK Group Chairman Chey Tae-won, who also heads the Korea Chamber of Commerce & Industry, speaks during an event held in Seoul on Sept. 4. [YONHAP]

A group of Korean business lobbies on Thursday launched a joint forum aimed at fighting the country's corporate regulations.

The Korea Chamber of Commerce & Industry (KCCI), the Federation of Korean Industries and the Federation of Middle Market Enterprises of Korea launched the Business Growth Forum aimed at reducing corporate regulations.

The move came amid claims that excessive regulations could hinder companies' expansion.

"Unless regulations differentiated by company size are abolished, we cannot achieve economic growth," SK Group Chairman Chey Tae-won, who also heads the KCCI, said in his opening remarks.

"Businesses should make a bet by bearing risks and seeking growth, but they are becoming reluctant without incentives to do so," Chey said. "As long as such regulations exist, businesses will opt to remain small and medium-sized firms or even split divisions."

Chey added that the government should encourage small companies to grow into conglomerates because an increase in the number of large firms will eventually lead to economic growth.

Finance Minister Koo Yun-cheol, third from left, speaks during the launching ceremony of the Business Growth Forum hosted by the Korea Chamber of Commerce & Industry, the Federation of Korean Industries and the Federation of Middle Market Enterprises at Lotte Hotel in Jung District, central Seoul on Sept. 4. [YONHAP]

Citing data from the government and market watcher FnGuide, only 0.04 percent of small businesses grew to become midsize firms from 2020 to 2023. Over the period, only 1.4 percent of midsize companies became conglomerates.

The KCCI also said the average annual sales growth of conglomerates was estimated at 10 percent from 2004 to 2014, but the figure plunged to just 2.6 percent from 2014 to 2023.

"The biggest challenge in Korea's business environment is that it hinders entrepreneurship," said Song Seung-heon, who heads McKinsey & Company's Seoul office, adding that business managers are more likely to avoid risks due to the structural issue.

Song added that Korea needs to make efforts to provide more safety nets and incentives for companies.

The forum, meanwhile, plans to hold regular gatherings and carry out research on how existing regulations hinder business expansion and economic growth.

Yonhap