Entry 2018.11.07 03:15
Government, controversy promoting cooperation … Business circles "Strong shackles tied to the ankle"
"If the profits are reduced, the expenses will be reduced, and the investments and job creation are made using what money"
The government benefit sharing system, known as the results sharing system, has already been implemented by some large corporations, such as POSCO and Samsung Electronics. In the past, during the government of Lee Myung Bak, the government promoted the introduction of full profits under the name of the system of excess profit-sharing, however, large and medium-sized companies share their results in an autonomous manner in response to strong opposition from large corporations. Until September this year, 6360 SMEs benefited.
The problem is that the government will legislate. The government says: "This is just a way to encourage large corporations." But corporations respond to the saying: "If the law comes into force, it will become mandatory." An official from an economic organization said: "The government says that the benefits of sharing profit with small and medium-sized enterprises are limited due to the introduction of a common profit-sharing system.
◇ "Providing incentives for entered companies" and "Shackles holding cubes"
The government announced on June 6 that "cooperative business types", distribution and IT (information technology) of large corporations that share profit through research and development (R & D) "Type of deposit compensation" that provides additional profits, and " Type of incentives ", which provides incentives for partner companies that have taken action to achieve business results. If a large company and a small company jointly develop a new product or manage to locate it, it transfers a certain amount of profit to a small company depending on the sales volume or product profit.
To encourage the voluntary participation of large corporations, the government decided to provide corporate tax credit to all participating companies, a common valuation of the growth index, and the preferential benefits of government companies in research and development. In addition, excellent companies that borrow from the Korean Development Bank, Export and Import Bank etc. are preferred, and the best companies will benefit from the choice of exemplary taxpayers and government awards. Even if large companies do not participate, they will not be disadvantaged.
However, companies are afraid that stagnation is growing in business, and a profit-making cooperative can become handcuffs associated with the company's cube. A clerk from a large company said: "Currently, the main industries except for semiconductors are rapidly losing their competitiveness, and the economic forecasts for the next year are very uncertain." In this situation, I doubt whether it is appropriate to implement another policy on shackles for large enterprises. "In fact, some companies that can implement a profit sharing system with SMEs are Samsung SDI, SK Hynix, POSCO and LG Chem, which are already implementing performance programs." Hyundai Motor, which was Korea's leading economy with Samsung Electronics, saw a drop in in July to 1.2% in the last three quarters, and the OP Kia Motors margin is only 0.8%.
◇ "Corporations, injuries may be abroad"
In the business world, the question "Does the government know the structure of corporate profit well?" A clerk from a large company who asked for anonymity said: "Profits are determined by various factors, such as quality and cost, as well as marketing and brand." How profits can be determined in advance,.
It is pointed out that the government may intervene excessively in the management of the company during the implementation of the joint profit sharing system. "It is doubtful how many companies will not adhere to government policy in a situation where prosecutors, the domestic tax service and the FTC are investigating from time to time." Government evaluation of the implementation of cooperative benefits I have a different handle. "Choi Jun-sun, emeritus professor at the Law School of the University of Sungkyunkwan, said:" There will be more and more large companies moving abroad and relocating their suppliers to China and Japan. "
Small businesses are also cautious. "It is expected that sharing the benefits in terms of cooperation will eliminate the polarization between large and small enterprises and will be a step to raise the competitiveness of our economy to a higher level." He added: "It is better to introduce self-employment." It should spread towards strengthening incentives for large corporations. "
☞ Shared profit sharing system
It is a system for the allocation of results, which divides a portion of profits according to the preliminary agreement, when a large corporation and small and medium business partners achieve the target sale or profit specified earlier. The government plans to introduce tax incentives, such as tax incentives, to host companies by legalizing this system for the first time in the world.