Park Yongman, Outgoing Head of KCCI, Says "'Regulatory Sandbox' Is the Biggest Achievement... Regrets Not Changing the Big Flow"

"The Most Memorable Event is the Implementation of the 'Regulatory Sandbox'"
"Korea Chamber of Commerce Led by Chey Tae-won Will Reflect Large Corporations' Voices More"
"Korean Economy is at a Turning Point"
"Regulatory Reform, Companies Face the Double Burden of Change Amid Difficult Circumstances"

[Asia Economy Reporter Hwang Yoon-joo] Park Yong-han, chairman of the Korea Chamber of Commerce and Industry (KCCI), will retire after completing his term in March. It is the first time in 20 years since the late former chairman Kim Sang-hwa that a KCCI chairman has completed a full term. During his 7 years and 8 months in office, Chairman Park spent 211 hours in meetings with the government and 72 hours and 45 minutes at the National Assembly. His efforts to voluntarily facilitate communication between the business community and politics, as well as between the business community and the public, can be seen throughout his tenure. Below is the full interview with Chairman Park.

- What is the most memorable event?

▲ The 'Regulatory Sandbox.' The most urgent appeal I made during my tenure was that laws and systems need to be changed. The coming era will see the emergence of technologies and businesses that we cannot imagine or fully understand. Existing laws and systems cannot accommodate the future. I went to the National Assembly and the government to say that changes were necessary, but it did not go well. The legislative branch and the executive branch each had their reasons for not being able to change. So, the sandbox was about bypassing laws and systems to start things first and then find justification to change laws and systems through market demonstrations. After actually trying it, I realized that idea was correct.

- What are the achievements and regrets regarding regulatory reform?

▲ Starting with the passage of the Sandbox Act and leading support bills, these are all achievements. The regret is that we could not change the major turning points. There are a few issues that could have changed the big turning points. It is unfortunate that we could not change those major turning points.

Since the topic came up, there have been many stories that recent regulatory legislation has made things very difficult for companies. The amendments to the Commercial Act, the Fair Trade Act, and the Serious Accidents Punishment Act were all poured into the 21st National Assembly, raising significant concerns. However, the increase in burdens on companies is not something that only happened under this government. The issues of ordinary wages and the corporate income repatriation tax system started under the previous administration.

It is not right to completely deny the necessity of corporate regulation. However, if you look at why resistance and concerns are so highlighted, it is because Korea is currently in a transitional period. The growth of industries that have driven the Korean economy in the past is slowing down. It is a time when deep reflection on how to grow again is needed. At the same time, key industries are being encroached upon by emerging countries.

A significant number of companies are not keeping up with the changes. The environment has become hostile, which is difficult in itself, and the burden of demands for change is increasing, so especially companies in difficult situations inevitably raise their voices loudly. It is not that companies are resisting change. Rather than whether they accept regulations, it is a time for reflection on how much our economy can grow, a new perspective on the entire industry, and changing the environment accordingly. This cannot be achieved simply by making policies. Because market participants cannot keep up, their voices have grown louder, making it seem like the government and companies are in conflict. Companies feel that the burden has increased too much in a short time since the previous government. However, if you dig into the root causes, there is a side where companies' health is not strong enough to accept the necessary changes.

- Nevertheless, some companies have expressed opinions that their responses during the corporate regulatory legislative process were problematic.

▲ If you say there were problems, that would be misleading; it is more accurate to say they were unsatisfactory. Looking at the results, I think it is natural for them to be dissatisfied, and I have nothing to say about that. They failed to defend themselves. However, I think the way economic organizations raise their voices and convey opinions needs to change. There are limits to strongly expressing opposition by issuing statements as in the past. I believe it is time to present facts about issues, discuss pros and cons, and gain support. So, even during the amendments to the Commercial Act and the Fair Trade Act, I persistently requested holding public hearings to put all issues on the table. The problem was that the legislature did not seem willing to do so. Even though public hearings were held, the bills passed almost as originally proposed. I was disappointed, but I believe the method chosen by KCCI was correct.

- You are seen as having played a major role in raising the status of KCCI. However, since the Federation of Korean Industries (FKI) has lost its standing, there are talks about the need for an economic organization representing the business community. What are your thoughts on the role and direction of economic organizations going forward?

▲ I do not want to talk about other organizations. KCCI has member companies including the top 10 groups, and since the heads of the four major groups have become KCCI chairmen, I think this issue will naturally be resolved. The unanimous recommendation of SK Chairman Chey Tae-won by KCCI reflects that intention. Still, the direction of the top five groups in Korea is important. The chairman of one of the four major groups has become KCCI chairman, so I think changes will occur.

- Was the reason for recommending Chairman Chey Tae-won as your successor because he is the head of one of the four major groups?

▲ That is not all. It is undeniable that the size of a company gives considerable influence. The top five groups have a significant impact on our business community. While KCCI represents companies from large to small, having a chairman of that scale naturally increases the influence of representation, so I considered that. Also, looking at the current composition of KCCI's chairmanship, since they are close to future industries, I believe they have much better insight to represent future directions than I do. Among Chairman Chey's ideas, 'social value' has now become a trend that runs through the era. In that respect, I thought it was very appropriate.

- Can we expect KCCI to amplify the voice of large corporations going forward?

▲ Not necessarily. It is not about amplifying the voice of large corporations but rather reflecting that, until now, we may have neglected representing the interests of large corporations because we focused on mid-sized and small companies. The economic situation has been very difficult, and when the economy is tough, the most affected companies are those in marginal industries and small businesses. So, we focused on those sectors, but now that Chairman Chey has come and COVID-19 is subsiding, I expect that the opinions of large corporations will be represented to a considerable extent.

- Does that mean strengthening the voice of large corporations that could not be expressed before?

▲ It depends on how you express it, but he is also someone who strongly believes in coexistence and partnership. The newly formed chairmanship consists of young entrepreneurs who started from scratch and succeeded on their own. So, it will not be like the FKI in the past, which strongly represented the interests of large corporations. That is my guess.

- You engage in a lot of personal volunteer work. Recently, I would like to hear your own standards or thoughts on realizing distributive justice in our society.

▲ I fully agree that the social safety net must be strengthened. I have repeatedly asked for attention to direct distribution policies through the social safety net. Regarding distribution policies, there is controversy over whether the role should be played by public finances or by voluntary private efforts. I absolutely believe that the role of public finances must come first. When it becomes visible that polarization is reduced through national finances, it becomes possible for the private sector to voluntarily step forward for society. My personal volunteer work is somewhat different. Among the prayers I have written while volunteering, there is a line that says, 'Let us realize that those in the shadows and those in comfort are fruits borne on the same tree.' It means that we must recognize our duty to help them as fruits on the same tree. What is a comfortable system for me may be an inconvenient system for someone else. Under the same tree, if I benefit and someone else does not, I must voluntarily help. That is why I volunteer.

- What are your plans after retirement?

▲ First, I intend to fulfill my duties. As chairman of the board of Doosan Infracore, I do not know when it will end, but I plan to fulfill my duties until the end. I have no intention of entering politics. I want to find what I can do to have a positive influence on society or help young people realize their dreams. I have not decided yet.

- If you receive an offer for an appointed position, how would you respond?

▲ I do not know. I will consider it case by case. But politics does not suit me. I cannot do well. Especially for someone like me who has managed businesses intensely, there is a mindset of following productivity and profitability. However, the realm of politics cannot be judged by productivity and profitability. Politics is about taking care of those left behind while moving forward with goals. Therefore, I believe that businesspeople should not engage in politics.

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