We are now in the long predicted 4th wave of covid-19 infection which means we have to start with a discussion on the impact, and how this affects the government’s projected 4.2% growth rate. Quite a lot depends on whether the government adds further restrictions to the already announced Monday July12th measures which are not quite enough to bring the outbreak under control. We will then turn to the three areas of policy which were announced – government direction of working conditions, the circular economy and the rapid transit subway plans which will make moving around Seoul between certain hubs much faster.
The government is always changing its policies, but some challenge business and some change businesses. Our session on July 15th will challenge you to think about three changes which will affect or are affecting most businesses in Korea.
1) Adjusting to the 52-hour week for companies and organisations with 5 – 49 employees
2) Getting to grips with the circular economy and carbon tax adjustments
3) Changing the shape of Seoul and the housing problem in Korea
The 52-hour week for companies with 5 to 49 employees came into law on July 1. 50-299 employees moved to this standard on January 1 2020. Many foreign companies and organizations fall within this size. This change has had different impacts depending on whether the company is a manufacturing or a service company. We hope to hear from members on how they have adapted implementation.
Getting to grips with the circular economy and carbon tax adjustments. MOEF’s economic policies announced on June 28 are to complete both circular economy and carbon tax schemes by the end of the year which affect most items of daily life. All of them are likely to slow retail and wholesale sales and affect everything from depreciation calculations to logistics from 2021 onwards. How do companies plan to adapt? Does leasing rather than selling make more sense?
Changing the shape of a city is not an easy task, but the GTX A line will start operation at the end of 2022 or early 23 and be joined by 3 other lines. This hi-speed subway system means a commute or intracity journey can be cut from an hour to 20 minutes. As it links the outer suburbs, it allows more residential property to be developed on the edges of the city. This may have considerable impact on business location, interaction and property prices. But other quicker fixes are needed to win the coming Presidential election.
Please join us on line on July 15 to discuss how businesses coped with the 52 hour week and how they could adapt to a circular economy and the era of high speed subways.
Managing Director, KABC Ltd.