Representatives of business organizations across Korea gave the Moon Jae-in administration below-average marks in economic management, with a majority fearing an economic crisis or recession.

In a telephone survey by the Maeil Business Newspaper, 15 heads of chambers of commerce and industry in major provinces and metropolitan cities gave a score of 4.7 out of 10 in their overall evaluation of Moon`s economic governance. Moon took office in May 2017 and has led an economic policy focused on increasing wages, improving labor conditions and creating a fairer economy.

“It’s frustrating to see how the government is oblivious to the reality of businesses and the people and pushing forward with economic policies that are ridden with problems,” said one chamber chief. “Companies today are faced with multiple challenges, including labor strikes, tax probes and anti-business regulations.”

Another called the current administration an “amateur government” with populist social programs and labor policies that fail to address the hardship of the corporate environment.

Their anonymous comments come ahead of a meeting with the president in the Blue House on Tuesday.

None were positive about the economy. Nine found the economy in a state of crisis, two others in recession, and one in fixed slow-growth movement. The remaining three withheld comments.

They were favorable of government efforts to improve ties with North Korea but critical of the rash hikes in the minimum wage and the universal cutback in working hours.

Under President Moon Jae-in’s campaign to achieve a 10,000 won ($8.88) minimum wage during his term, the government raised the hourly minimum wage by 16.4 percent at the beginning of 2018 and by another 10.9 percent this month. In July 2018, Korea also cut the maximum working hours from 68 to 52 hours per week.

The policies drew immediate backlash from businesses large and small, with many claiming they were forced to lay off workers because of the new wages.

The government’s ambitious energy policy to wean the country off fossil and nuclear fuel was also viewed as too radical. Moon has pledged to lower the country’s nuclear reliance to 24 percent by 2030 and raise the share of renewables in the energy mix to 20 percent from the current 6 percent over the same period. Korea currently generates about 40 percent of its energy from coal, 30 percent from nuclear and 20 percent from natural gas.

Critics argue the move would drive up electricity bills and deliver a crushing blow to the economy, not to mention undermining the standing of the world’s fifth-largest nuclear energy producer and its efforts to export its nuclear technology.

By Hong Jong-sung and Kim Hyo-jin

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]