Top 30 conglomerates promise expansion of investment and jobs


Knowledge Economy Minister Hong Suk-woo pledged Wednesday to help business activities of the nation’s major business groups not to be affected by the current political disputes over “economic democratization,” or efforts to promote balanced growth and prevent abuse of economic power.

“Ahead of the presidential election at the end of this year, discussions related to economic democratization underway in the political circles can hamper business activities,” the minister said during a meeting of presidents of the nation’s top 30 conglomerates at a Seoul hotel on Wednesday.

“Economic democratization can mean more jobs. The current disputes can be resolved if we can solve the employment issue,” he said, urging participating business leaders to join efforts for job creation and expand investment.

He also proposed setting up a task force team that is responsible for handling complaints from businesses as part of efforts to better support business activities at the government level.

According to the ministry, the nation’s top 30 business groups said during the meeting that they will invest a combined 82 trillion won ($72 billion) and employ 66,000 more people in the latter half of this year. In the first half, they invested 69.1 trillion won and hired 62,500 employees.

They also plan to hire more high-school graduates, raising the number from 18,540, or 29.6 percent of the total new employees in the first half to 18,769, or 30.9 percent, in the second half.

Even though some sectors like shipbuilding, construction and refineries are expected to see their investment reduced due to stagnating markets, the total investment this year by the 30 biggest conglomerates is likely to achieve this year’s original goal of 151 trillion won.

During the meeting, the business representatives requested the government to expand tax benefits for research and development activities and the operation of relation facilities and reduce tariffs for essential equipment and raw materials.

They also urged to ease regulations in new buildings or adding facilities within the environment protection zone, while calling for more support for green growth and renewable energy sectors.

“The government will step up efforts to relieve difficulties of business activities in cooperation with business lobby groups here and operate a TF team for individual investment projects,” Hong said.

“At a time when the export environment is worsening due to the global economic slowdown, we need more aggressive investment and employment by conglomerates.”

In a recent government report, Korea’s trade balance came to $20.4 billion, in the black for the seventh consecutive month, in August. However, both exports and imports decreased 6.2 percent and 9.8 percent, respectively, compared to July.

By Lee Ji-yoon (jylee@heraldcorp.com)