South Korea's business community on Tuesday expressed hope for regulatory reforms after President Moon Jae-in emphasized the need for a definitive change in the domestic economy in his New Year's speech.

The Korea Chamber of Commerce and Industry(KCCI) said the president presented the right direction in pledging to restore momentum in the private sector through deregulatory innovation and investment incentives.

The KCCI stressed the need for policies that strengthen mechanisms and incentives to induce private spending, investments and exports.

The Korea Enterprises Federation expressed hope that the government and businesses will increase communication on state policies and join efforts to achieve growth.

The Federation of Korean Industries called on the government to introduce bolder and more active deregulatory and innovative growth measures in the era of the Fourth Industrial Revolution.