April 20, 2024

• 

[THE INVESTOR] After a year of political unrest, public fury at problematic state-business ties and a prolonged economic downturn, the chiefs of South Korea’s major business groups called upon businesses to “return to the fundamentals” in 2017.

“Korean businesses recently became a center of controversy, disappointing the public,” said Park Yong-man, Chairman of the Korea Chamber of Commerce and Industry, the country’s largest business association, in his New Year’s speech.

“We will work to foster stricter standards of our own that can stand above the law in order to restore public trust in our businesses,” he said.

Referring to a Chinese saying that “once the fundamentals are established, a new path forward will open,” Park further ushered the business sector into focusing on fulfilling its basic duties in their respective fields.

“I believe that Korea’s economy can overcome challenges and emerge stronger if the business sector straightens out its fundamental principles while each entity faithfully fulfill its given role.”

The KCCI chairman also encouraged businesses to work together to build up a market economy which encourages innovation, self-sufficiency and fair competition, as well as provides social safety nets where needed.

Similar concerns were echoed by Huh Chang-soo, chairman of the Federation of Korean Industries, the country’s largest business lobby at the center of the influence-peddling scandal involving President Park Geun-hye and her longtime friend Choi Soon-sil.

The FKI has been facing calls to disband since it was found to have played a key role in ushering coercive and illicit fundraising for the Mir and K-Sport foundations, both allegedly formed and operated by Choi.

“Korea is facing immense difficulties, with falling domestic consumption, sluggish exports in major industries and social and political unrest,” said Huh, who plans to step down from his post in February 2017.

“At times like this, we must focus on the basics even more. Korean companies will especially have to focus on their original tasks -- raising their competitiveness to survive difficult conditions in the global market.”

Huh also apologized on behalf of the FKI for “disappointing and worrying citizens with the recent set of events,” and pledged to devise reform measures to become an organization that can contribute to the national economy and win the public’s approval.

Predicting another year of low economic growth, expanded protectionist policies and fast-changing market conditions in 2017, Kim In-ho, chairman and CEO of the Korea International Trade Association, encouraged local businesses to embrace “global entrepreneurship.”

“Companies must boldly abolish policies that do not meet global standards while expanding trade partnerships with major export partners to build a groundwork for overcoming protectionism in the long run,” Kim said.

Meanwhile, chairman of the Korea Employers Federation Park Byung-won reiterated that the best social contribution that companies can offer in today’s times of hardships is “new job creation and maintenance.”

By Sohn Ji-young /The Korea Herald (jys@heraldcorp.com)