22% of companies “I want to be in Korea”… Anti-market regulation boomerang

With the 3rd Corporate Control Act (Commercial Act, Fair Trade Act, Financial Group Supervision Act) and the Severe Accident Corporate Punishment Act, the Industrial Safety and Health Act, the Personal Information Protection Act, and other unprecedented corporate regulatory laws, more and more companies are considering reducing employment and investment. It was investigated. In particular, it was found that mid-sized companies and venture companies are also considering corexit (korea+exit), which moves their business sites overseas.

Of the 230 respondents who participated in the’Recently Entrepreneur Perception Survey by Enhancing Corporate Regulations’ conducted by the National Federation of Entrepreneurs (Former Convulsions) with the Venture Business Association and the Korean Federation of Midsize Companies, 37.3% of the respondents said they would consider reducing domestic employment. In addition, 27.2% chose to reduce domestic investment and 21.8% chose to relocate their domestic workplaces overseas.

Mainly large corporations (50%) and mid-sized companies (37.7%) put emphasis on’reduction in investment’, and venture companies often suggest employment reduction. In particular, in the case of large companies, the response rate for overseas relocation was only 9.3%, but for mid-sized companies and venture companies, 24.5% and 24%, respectively. It is an analysis that excessive corporate regulation hurts SMEs more than large corporations.

In fact, the 52-hour week system was implemented from the second half of 2018, while it was applied to businesses with less than 300 employees from January 1 of last year. However, as the burden of small and medium-sized businesses suffering from manpower shortages increased, the government gave an unusual one-year guidance period, which in fact began in earnest this year. In addition, workplaces with fewer than 50 employees will be implemented from July this year.

69.5% of the survey respondents answered that they were’very dissatisfied’ (44.3%) and’complained’ (25.2%) when the government and the National Assembly reinforced corporate regulations. By company size, the dissatisfaction rate of large companies was the highest at 96.5% (67.9% very dissatisfied, 28.6% dissatisfied), while that of mid-sized companies was 82.2% and that of venture companies was slightly lower at 63.2%. However, only 22 companies (one middle-sized, 21 ventures), or 9.5% of the total, answered’very satisfied’ (3.0%) or’slightly satisfied’ (6.5%).

Companies dissatisfied with the government policy were most concerned that their competitiveness was weakened (59.4%) due to the deteriorating institutional environment. They also cited anti-business sentiment (31.9%) as a potential criminal group as a problem.

As the most urgent improvement task, they pointed out labor regulations (39.4%) including the 52-hour week system and the union law. Conglomerates ranked first in’Discrimination regulation by company size under the Commercial Law and Fair Trade Act’ (47.3%), while mid-sized companies (37.5%) and venture companies (44%) were subject to’labor-related regulations such as 52 hours a week’. I was sensitive. Mid-sized companies (23.2%) and venture companies (22.4%) also ranked second in tax-related regulations such as reducing corporate tax and easing corporate tax burden, indicating that the recent rising corporate tax burden is large.

Yoo Jeong-ju, head of the FKI’s corporate system team, said, “Amidst the difficult economic situation, such as the 52-hour weekly system started in earnest for all business sites from this year, companies are increasingly seriously considering relocation of business sites. ·We are concerned about the outflow of technology and capital,” he pointed out.