Korean Chamber of Commerce suggests ways to boost domestic consumptionUpdated: 2014-06-26 06:28:22 (KST)
The Korea Chamber of Commerce and Industry made suggestions for improving business climates in Korea to keep investment and jobs in the country.
In its report released on Wednesday, the chamber said excessive regulations prompted many Korean businessmen to build factories abroad.
Last year, overseas investment by Korean companies accounted for more than 27 percent of their investment at home -- triple the amount from nine years ago.
The Chamber suggested the government should introduce new regulations gradually to give local businessmen time to adapt to changes such as extending the retirement age, expanding maternity leave and reducing working hours.
It also calls for tax breaks and other incentives for companies relocating factories to Korea from overseas, saying the U.S., Germany and Japan all offered such sweeteners.
The chamber said deregulation was particularly necessary in the service sector, including tourism and the medical industry.
To attract some of the 100 million Chinese who travel overseas every year to Korea, it said the government must simplify the visa process and take steps to expand accommodations and the pool of service professionals.
It also urged the government to allow hospitals to set up for-profit subsidiaries to accommodate the surging medical tourism sector.
The number of medical tourists visiting Korea is around one-tenth the amount that go to Thailand.
Kim Ji-yeon, Arirang News.
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