Business Community, actively seeking preemptive response system to international issues, such as Google tax
– FKI, reorganizes BIAC Korea Committee, an OECD advisory organization, and convenes its first official meeting
– Yoon Kim (Chair & CEO, Samyang Holdings) chairs the Committee; over 10 additional trade and tax experts appointed
– Goal is to mitigate potential business risk by preparing responses to international issues, such as another ‘Google tax’
To respond rapidly to international policy issues that may impact Korean businesses, such as Google tax, the business communities have established a response system.
The Federation of Korean Industries (FKI) has reorganized the Korea Committee of BIAC (The Business and Industry Advisory Committee), an OECD policy advisory organization.
On May 3 (Thursday), the Korea Committee convened its 1st annual meeting. Yoon Kim, Chairman and CEO of Samyang Holdings, who has been representing Korea on the BIAC Executive Board since 2012, was appointed as Chair of the Committee. Additionally, more than 10 Committee members participated, including Taeho Bark (President of Lee & Ko Global Commerce Institute), Chung, Tong Soo (Senior Foreign Counsel at Yulchon LLC), Jae Hoon Lee (Senior Advisor at Kim & Chang), and Sangki Park (Senior Advisor, Yoon & Yang LLC).
BIAC is composed of business groups from OECD member countries; they advocate the business community’s views when OECD established policy guidelines. Since it joined BIAC in 1996, FKI has hosted the 2002 BIAC General Assembly Meeting, and the 2016 BIAC Executive Board Meeting in Korea, effectively representing the Korean business community through these activities.
Chair Yoon Kim, “Tax and trade experts appointed to devise preemptive responses against potential business issues, such as Google tax.”
Chair Yoon Kim offered the rationale behind the restructuring of the BIAC Korea Committee. “Despite Korea’s global status in the world economy, Korea has remained weak in advocating its position in multilateral diplomacy, and the business community’s response has been lacking in extended discussions regarding business issues, such as ‘Google tax.” He added, “Experts in various areas, such as tax, trade and energy, have been appointed as Committee members, so that the businesses can devise preemptive responses to potential future issues.”
Plan to engage in policy group activities under BIAC … and to host Korea Committee-business community meetings
Capitalizing on the restructured BIAC Korea Committee, FKI plans to conduct in-depth analysis of policies under discussion at OECD and BIAC, and to seek solutions for each business area. The newly appointed members of the BIAC Korea Committee will engage in activities relevant to trade, corporate governance, taxation, accounting policies, and other areas to communicate issues that could potentially impact Korean businesses, and deliver the Korean business community’s opinion to OECD.
Eom Chi-sung, head of the International Cooperation Team at FKI, offered his expectation by commenting, “if we can identify, in advance, international business issues, such as another Google tax, and prepare a preemptive response, we will be able to mitigate risks from sudden shifts in business environments.” Eom pledged that the Secretariat will play a proactive role by hosting discussions between the BIAC Korea Committee and the Korean business community.