Park Yong-man, Chairman of the Korea Chamber of Commerce and Industry, "We Must Provide Changed Containers for the Changed Era"

2020 Year-End Interview
"If You Fail to Keep Up with Timely Changes, You Become an Unmanageable Burden"

Park Yong-man, Chairman of the Korea Chamber of Commerce and Industry

[Asia Economy Reporter Dongwoo Lee] "Throughout my term, I kept talking about the 'frog in boiling water' story. I was very worried that if we don't keep up with timely changes, it might become an uncontrollable mass. Even for existing industries, we need to quickly provide new containers that fit the changed era."

Park Yong-man, Chairman of the Korea Chamber of Commerce and Industry (KCCI), said this during a year-end interview with the press corps held on the 23rd at the KCCI building in Jung-gu, Seoul. "Laws and systems must change quickly to keep pace with the rapidly changing times," he emphasized.

Reflecting on the economy this year, Chairman Park said, "It felt like riding a roller coaster," and added, "Fortunately, the government's support measures came out quite quickly, which gave us some relief."

However, he cautioned about the economic recovery outlook after the novel coronavirus disease (COVID-19). Park stated, "If we have too much expectation for a sudden recovery, there is uncertainty in that itself," and stressed, "To overcome the unprecedented situation of COVID-19, many emergency and extraordinary measures have been taken, but these measures must be very carefully and properly withdrawn when returning to normal."

Park said, "The activation of untact business and online business using IT in response to the COVID-19 crisis is quite desirable, but other than that, there doesn't seem to be much significant change yet," and added, "Therefore, I want to urge that laws and systems must also change quickly to keep up with the rapidly changing times."

He also expressed disappointment regarding recent government-proposed corporate burden bills. Park said, "I felt powerless when burdensome bills for companies were passed hastily," and explained, "Especially in the case of the recent 'Economic 3 Laws,' I was very disappointed not only with the content but also with the legislative process."

He pointed out, "Although the National Assembly said it would reflect some of the expected side effects and held public hearings and discussions, the legislative outcome did not reflect that," and added, "Considering the majority of diligent companies, it inevitably results in over-legislation."

He continued, "Since the laws have already passed, rather than continuing futile controversies, we should proactively respond to side effects within the framework of the passed laws," and urged, "It would be good if measures to prevent side effects are included even in subordinate laws such as enforcement rules for the Economic 3 Laws."

Regarding the ongoing electric vehicle battery lawsuit between LG Energy Solution and SK Innovation at the U.S. International Trade Commission (ITC), he said, "There were talks about mediating between the two companies, but I think a conclusion based on the law must come in any form," and cautiously added, "Considering the scale, social position, and status of the two companies, mediation or reconciliation is not something to be easily considered."

On the claim that economic organizations should unite and jointly respond to major issues, he emphasized, "Since each economic organization has different founding purposes, missions, and member compositions, their voices inevitably differ," and stated, "I think the practice of economic organizations gathering all at once to issue joint statements should decrease."

Park Yong-man, Chairman of the Korea Chamber of Commerce and Industry

2020 Year-end Interview Q&A with Park Yong-man, Chairman of the Korea Chamber of Commerce and Industry

◆ What is your economic outlook for next year?

There is no doubt that the economy will show signs of recovery next year. With the start of vaccination, the burden of social distancing will ease, and if stimulus measures are connected, there is hope that it will be better than this year. However, the recovery will likely be short-term, and there will be aftereffects from the emergency measures taken during the COVID-19 situation. If these aftereffects are not properly reviewed and prepared for, the year after next could be more difficult. Also, corporate financial conditions are unlikely to improve rapidly, and restructuring to separate the wheat from the chaff will likely become more active. Socially, there are many uncertainties such as the inauguration of the Biden administration, private debt, and the presidential election in the second half of the year. It is not a situation to rejoice simply because we have escaped the crisis. Financial support for companies and measures for major uncertainties are necessary.

◆ How will corporate activities change after the post-COVID era?

Digitalization, untact (contactless) business, and industries such as bio are changing whether we like it or not, and these changes will continue. Interest in new industries, changes in working methods, and technological changes will be much more accepted than in the past. With untact onlineization and entry into new industries, polarization issues will inevitably follow, where good areas get better and less favorable areas get worse. There will also inevitably be a mismatch in manpower, where needed personnel are insufficient and remaining personnel are less needed. Therefore, companies must keep a keen eye on these issues. In Korea's case, companies need to think a lot about changes in perception.

◆ What is the impact of changes in international relations on our industry?

Historically, as a long-standing ally, there will be fewer sudden variables in military, diplomatic, and trade issues, and actions will be taken under predictable game rules. I hope that Korea-Japan relations will be separated between politics and economy. After more than a year of Korea-Japan conflicts, neither side has gained anything. I hope politics and economy will be separated not just in words but in practice.

◆ Any memorable experiences in promoting regulatory reform?

Regarding the sandbox, the most memorable thing was in October last year when I asked the President to "open a private channel. We will also lend a hand." The real intention was not to compete with the government's sandbox but to help the government speed up the opening of new businesses. The government created a private sandbox channel in just three months at super speed, which I remember vividly. There were new technologies like multi-wireless charging and wireless charging where you can sit and get charged, or buses that charge automatically while running on the road. Also, shared kitchens and shared beauty salons are for low-income sectors; the shared kitchen law was revised for the first time in 60 years under the Food Sanitation Act, and the shared beauty salon law was revised for the first time in almost 20 years. This opened opportunities for many young entrepreneurs, which I remember well.

◆ The Economic 3 Laws have finally passed. What is your response plan?

Although there are regrets about the content and procedure of the Economic 3 Laws, now is the time to find institutional supplements within the framework of the established laws rather than continuing futile controversies. Measures to prevent side effects should be reflected in subordinate laws such as enforcement decrees and rules, and companies should also find measures to increase transparency and management efficiency. The Economic 3 Laws are basic laws, but there are individual laws like the Chemical Substance Control Act (Chemicals Control Act) that companies continuously request to be supplemented whenever there is an opportunity. I think the National Assembly needs to reflect on whether there was over-legislation regarding these bills.

◆ There is an opinion that economic organizations should jointly respond to major issues.

Economic organizations inherently have different voices depending on their nature. This is because each economic organization has different member compositions, founding purposes, missions, and focus issues. They should discuss and express opinions according to their focused issues rather than setting up confrontational frameworks like 'business community vs. government' or 'business community vs. legislature.' During the 'Economic 3 Laws' phase, economic organizations initially opposed and proposed joint responses, but KCCI judged that procedures like discussions and public hearings were necessary and did not participate. This will continue, and I think the practice of economic organizations gathering all at once to issue joint statements should decrease.

◆ The battery lawsuit between LG Chem and SK Innovation is prolonged.

It seems that a conclusion based on the law must come in any form to resolve this. The two companies had different views on their technology and human resources issues and have left the judgment to the courts. This is not something to be handled like a negotiation between friends. I was asked to mediate between the two companies, but considering their scale and social status, I think it is not a matter to easily think of mediation or reconciliation. The perspective on companies needs to be more advanced.

◆ What are your key projects and evaluations for KCCI this year?

My conviction remains unchanged that if old laws and systems block companies from finding new opportunities, they must be changed or removed. In October last year, I told President Moon Jae-in, "Please open a private sandbox channel. KCCI will also lend a hand," and the government quickly created the private sandbox channel. Despite the COVID-19 crisis this year, as word spread that difficult issues were being resolved through the KCCI private sandbox, young entrepreneurs came, and unprecedented new technologies were launched. I was able to ambitiously innovate old laws and systems and expand business opportunities for young companies. I consider this my greatest accomplishment.

◆ SK Group Chairman Chey Tae-won is mentioned as a candidate for the next KCCI chairman.

I cannot disclose whether the chairmanship was offered or internal discussions, but I expect an answer. The KCCI chairman selection process is defined by law, and within about a month from now, the consensus of the chairman group must be gathered in some form. Whoever it is, I think the next KCCI chairman will enter this position with a great sense of responsibility. The environment of KCCI has changed a lot since I first became chairman.

◆ You are scheduled to retire in March next year. Any thoughts and plans after retirement?

With three months left in my official term, I have not yet organized my thoughts. However, the problems and expectations society has about companies and the economy have not changed much since I first took office, and I regret that I could not change what needed to be changed. I have no plans yet after retirement and will have to think about what to do.

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