KDI and National Economic Advisory Council Online Forum Held: "Exploring Solutions to Resolve Corporate Dual Structure"

[Asia Economy Reporter Jang Sehee] The Presidential Committee on National Economic Advisory and the Korea Development Institute (KDI) announced on the 17th that they will jointly hold an online policy forum titled 'Dual Structure of Korean Corporate Sector, Present and Future.'

Amid the recent global economic downturn, the polarization of productivity and dual structure among domestic companies have deepened, causing corporate growth to stagnate and dynamism to decline, making the 'resolution of the dual structure in the corporate sector' an important issue.

This policy forum was organized to explore the current status of the dual structure of domestic companies and ways to resolve it, and to discuss policy responses in preparation for the anticipated changes in the corporate ecosystem.

The forum was originally planned as an offline event but will be held online due to strengthened social distancing measures.

Lee Byungheon, President of the Small and Medium Business Institute, will present on 'Constraints and Improvement Measures for Productivity Enhancement in Small and Medium Enterprises,' and Yang Yonghyun, Head of Market Policy Research Division at KDI, will present on 'Measures to Improve Fairness in Transactions between Large and Small-Medium Enterprises.' The session will be moderated by Professor Lee Geun of Seoul National University’s Department of Economics, with discussants including Professor Kim Jinbang of Inha University’s Department of Economics and Jang Woohyun, Director of the Fiscal Performance Evaluation Center at the Korea Institute of Public Finance.

As the first presenter, President Lee stated that the polarization between large corporations and SMEs in Korea is due to uneven development of innovation capabilities caused by imbalanced research and development (R&D) investment and difficulties in securing talented personnel. He argued that it is necessary to activate incentive systems for attracting excellent talent, such as the SME Future Performance Sharing System.

Following this, Head Yang pointed out that government intervention has failed to address the essence of the dual structure problem and emphasized the need to strengthen punitive damages for technology misappropriation.

Meanwhile, KDI President Choi Jungpyo emphasized, "The Korean economy is showing a lack of dynamism across the corporate sector, labor market, education, and entrepreneurship," adding, "Without alleviating the dual structure in the corporate sector, it will be impossible to enhance economic dynamism."

This content was produced with the assistance of AI translation services.