[Desk Column] Entrepreneurial Spirit Trapped in a Snare

"My concern lies in how I should contribute to making our nation glorious and our people proud." This is a quote from the autobiography of Chung Ju-yung, the honorary chairman and founder of Hyundai Group, who passed away 20 years ago this year (the autobiography is titled Trials May Come, But Failure Does Not). He was a founding generation entrepreneur who established Hyundai Group during the war-torn period and grew it into a global company. He is recognized as a businessperson who made a significant contribution to lifting South Korea out of poverty through the philosophy of 'business for the nation.'

The keyword that encapsulates the life of Lee Byung-chul, the honorary chairman who built Samsung Group, was also 'business for the nation.' As he said, "I have lived knowing that business is my entire life, and I have unwavering faith that my path lies in business for the nation," he consistently emphasized this philosophy when founding Samsung Sanghoe, the precursor to Samsung Group, in 1938, when starting the electronics business in 1969, and when entering the semiconductor business in 1983, continuously driving innovation. This philosophy has been passed down through three generations, from the late Chairman Lee Kun-hee to Vice Chairman Lee Jae-yong.

They are not alone. Founding generations such as Koo In-hoi, honorary chairman of LG Group, and Kim Woo-joong, former chairman of Daewoo Group, all shared the conviction that "the nation must survive for businesses to survive," leading the Miracle on the Han River. This is the secret behind South Korea’s growth from the world’s poorest country in 1953, with a per capita income of $76, to one of the world’s top 10 economies today.

Now, living in the new normal era triggered by the COVID-19 pandemic, the challenge for entrepreneurs is to inherit and recreate the spirit of the first generation of founders. Choi Tae-won, chairman of SK Group and current chairman of the Korea Chamber of Commerce and Industry, also stated, "I consider business for the nation as the most important virtue of entrepreneurial spirit," adding, "a new entrepreneurial spirit is required at this point." This underscores the absolute importance of entrepreneurs’ roles in becoming a leading nation in the post-COVID era.

However, the reality is different. While countries around the world are making every effort to overcome the economic crisis caused by COVID-19 by easing corporate regulations, our companies are trapped in the snare of excessive regulation. According to the Korea Employers Federation, 213 bills passed last year imposed burdens on corporate activities. Many of these regulations targeted CEOs and were severe. For example, under the amended Industrial Safety and Health Act, starting this July, CEOs can face up to 10 years and 6 months in prison if a fatal or serious accident occurs at the workplace. Additionally, if the Serious Accident Punishment Act, which allows CEOs to be sentenced to at least one year in prison for accidents, is applied, CEOs could be imprisoned for more than 11 years and 6 months under just these two laws. This is a punitive regulation rarely seen abroad. The UK’s Corporate Manslaughter and Corporate Homicide Act, which served as a model for the Serious Accident Punishment Act, only regulates penalties for corporations when safety organizational culture is inadequate; it does not include provisions for punishing individual executives.

Regulations created by the government and National Assembly are damaging entrepreneurial spirit and causing businesses to give up. It is no wonder that the saying "Doing business in Korea feels like walking on the prison wall" has emerged. Businesses are not tools for political strife. It is hoped that companies will no longer be judged by political ideology. If the goal is to leap forward as a leading nation, the voices of businesses must be heard. At the right time, President Moon Jae-in also urged, "Please actively communicate on regulatory innovation issues demanded by businesses."

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