Despite Protectionist Policies, Government Only Strengthens Regulations
Korean Companies Caught in Thucydides's Trap
[Asia Economy Reporters Choi Dae-yeol and Lee Dong-woo] "The aviation industry is not just about domestic competition but a matter of survival among global companies, and I hope our authorities (the Fair Trade Commission) take the lead."
KDB Industrial Bank Chairman Lee Dong-geol's candid remarks at a mid-month meeting have been circulating inside and outside the industry and government circles because the recent global trade environment has become increasingly challenging. With the US-China hegemonic competition strengthening protectionist policies and more sectors experiencing ups and downs due to the COVID-19 pandemic, corporate decision-making processes have become more complex. While governments worldwide, including the US and China, are rushing to support their domestic companies, our government is criticized for tightening regulations that constrain businesses and failing to coordinate effectively within government departments.
According to the industry on the 27th, the schedule for the merger of Korean Air and Asiana Airlines is delayed beyond expectations due to delays in the corporate merger review. Korean Air submitted merger notification documents to nine essential reporting countries' competition authorities, including the Fair Trade Commission, the US, China, Japan, and the European Union (EU) earlier this year, but only Turkey, Thailand, and Taiwan have approved so far.
Hot Picks Today
"Could I Also Receive 370 Billion Won?"... No Limit on 'Stock Manipulation Whistleblower Rewards' Starting the 26th
- Samsung Electronics Labor-Management Reach Agreement, General Strike Postponed... "Deficit-Business Unit Allocation Deferred for One Year"
- "From a 70 Million Won Loss to a 350 Million Won Profit with Samsung and SK hynix"... 'Stock Jackpot' Grandfather Gains Attention
- "Stocks Are Not Taxed, but Annual Crypto Gains Over 2.5 Million Won to Be Taxed Next Year... Investors Push Back"
- "Who Is Visiting Japan These Days?" The Once-Crowded Tourist Spots Empty Out... What's Happening?
The acquisition of Daewoo Shipbuilding & Marine Engineering by Korea Shipbuilding & Offshore Engineering, pursued as part of restructuring in the shipbuilding industry, is in a similar situation. The EU, Japan, and our government have yet to approve it, and the Fair Trade Commission reportedly holds the position that the company must sufficiently present measures to resolve competition-restricting factors pointed out by the EU to gain approval. The Fair Trade Commission's review of sanctions against domestic shipping companies for "unlawful collusion" is also raising concerns that emphasizing principles without considering reality could harm key industries.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
