"Gradual Recovery of Domestic Economy, Companies Must Establish Future Strategies"... EY Hanyoung New Year Economic Outlook Seminar

EY Han Young Holds 2021 New Year Economic Outlook Seminar for Business and Economic Leaders
Former Financial Services Commission Chairman Lim Jong-ryong: "Debt, Corporate Sentiment, and Zombie Companies Are Potential Risk Factors"
"US Bidenomics and China's Dual Circulation Strategy Present Both Crisis and Opportunity for Us"
Byun Jun-young, Head of EY Han Young Industrial Research Institute: "Decarbonization, Data, and Remote Work Drive Change"

[Asia Economy Reporter Park Jihwan] A gradual recovery of the domestic economy is expected, and voices are emerging that business leaders need to establish proactive strategies to prepare for the post-COVID-19 era.

Global accounting and consulting firm EY Hanyoung held the 'EY Hanyoung 2021 New Year Economic Outlook Seminar' on the morning of the 17th, inviting major domestic business leaders and economic figures. The seminar, titled Reframe Your Future: Disruptive Changes After the Pandemic, was held online due to COVID-19.

At the seminar, former Financial Services Commission Chairman Lim Jong-ryong, who delivered the keynote speech on the 2021 domestic and international economic outlook, stated, "Despite uncertainties caused by the pandemic, the global economy is expected to improve. Emerging economies centered on China and India are showing strong rebounds, and major countries such as the EU and the United States are implementing active stimulus policies, resulting in solid growth."

Former Chairman Lim explained, "Private consumption accounts for 60-70% of our country's GDP, and this year, pent-up consumption is expected to revive, positively contributing to economic recovery." He also said, "Key domestic export industries are expected to strengthen their growth due to the recovery of the global market, especially next-generation technology-based industries such as semiconductors and automobiles."

He added, "Even if the economy shifts to a growth trend, uncertainties remain, and various risk factors exist." He identified potential risk factors facing our economy as rising debt, trends and conflicts in US-China policies, worsening corporate investment sentiment, and an increase in marginal companies.

Former Chairman Lim said, "The Bidenomics of the United States and China's dual circulation strategy represent both a crisis and an opportunity for us." Regarding the United States, he emphasized, "A risk factor we must pay close attention to is the introduction of carbon border taxes and other global eco-friendly policy movements." He also said, "China's plan to expand its domestic market could be an opportunity for our companies, but on the other hand, building a self-sufficient supply chain could be disadvantageous for Korea, which is an intermediate goods exporting country."

Regarding the post-COVID-19 business environment, former Chairman Lim presented elements of changes in the economic paradigm and stressed the need for thorough preparation. He emphasized that business leaders this year "must establish proactive strategies to confront uncertainties with the spirit of Eungbyeon Changsin (應變創新, adaptive innovation)."

Following this, Byun Jun-young, EY-Parthenon APAC Strategy Consulting Leader and EY Hanyoung Industry Research Director, who presented on 'Changes in the Business Environment in the Pandemic Era and Corporate Response Strategies,' stated that disruptive innovations in the post-COVID era can be classified into six types. The six major disruptive innovations are the rise of the Home Economy, the spread of decarbonization trends, the increasing importance of data, the Techonomic Cold War, the spread of cost-effective consumption, and the mainstreaming of non-face-to-face products/services.

The second presenter, Lee Jae-won, EY Hanyoung Partner, introduced three major future restructuring strategies that companies need to proactively prepare for in the post-COVID era. He emphasized, "First, it is necessary to restructure business portfolios based on the future values of various stakeholders such as ESG (Environmental, Social, and Governance)." He also stressed the need to "advance data-centric business models." Partner Lee analyzed the advancement of data-utilizing business models by noting that the value of data is changing, emphasizing, "Data has now gone beyond simple informational value and has become cash itself, marking the arrival of an era where data is money."

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