Park calls for fixing unnecessary regulations

President Park Geun-hye called on government officials Tuesday to accelerate efforts to eradicate unnecessary regulations hampering business activities, stressing creative venture ideas should not be dragged down by such interference.

"We should not allow a situation in which business ideas that could be a hit in the market are foiled by regulations," said Park during a meeting with public officials at Cheong Wa Dae, South Korea's presidential office.

Park also said officials should strive to create an environment by throwing away unneeded regulations so that companies will be willing to make investments.

Park has been pushing to lift or ease all but core regulations to create jobs and reinvigorate Asia's fourth-largest economy, calling unnecessary business restrictions "our archenemy" and a "cancer."

Park praised the introduction of the so-called wage peak system among companies for creating jobs at a time when young people are struggling to find jobs.

The jobless rate among people between 15 through 29 reached a record high of 9.2 percent in 2015, the highest reading since 1999, and much higher than the 3.6 percent average for the country as a whole.

The wage peak system calls for the retirement age of workers to be pushed back, giving them greater job security. The same people benefiting from this, on the other hand, must accept lower wages just before retirement, with the money saved used to hire new employees in a kind of work sharing arrangement.

"Over the past two years, around 8,000 new jobs have been created thanks to the adoption of the wage peak system by all 313 state-run institutions," said Park.

More than 70 percent of affiliates of 30 conglomerates and over 90 percent of banks in the country have embraced the system.

Source: Yonhap news agency

You may also like...