"Corporate Management Environment Poor Compared to Advanced Countries, Entrepreneurship Also Declining"

FKI Conducts Survey on 'Business Management Environment and Entrepreneurship' Targeting Members of the Korean Academy of Management

Data provided by the Federation of Korean Industries

[Asia Economy Reporter Kim Heung-soon] A survey has revealed that South Korea's business management environment and entrepreneurial spirit lag behind those of advanced countries, with the level of entrepreneurial spirit declining compared to the past.

The Federation of Korean Industries (FKI) announced on the 21st that, according to a survey conducted among members of the Korean Academic Society of Business Administration regarding the business management environment and entrepreneurial spirit, 62.3% of the 175 respondents evaluated South Korea's management environment as lagging behind advanced countries. The specific reasons cited included ▲burden of corporate regulations (39.4%) ▲increase in employment costs (31.7%) ▲uncertainty related to trade (12.8%), among others.

Respondents identified the policies that the next government should pursue to improve the business management environment as ▲easing corporate regulations (34.0%) ▲flexibilization of corporate employment (26.0%) ▲support for overseas market development and diversification of business partners (14.0%).

Major Issues in Management Environment: Global Supply Chain Restructuring and Digital Transformation
Innovation and Crisis Response Capability Are Important

According to the FKI, the current important issues in the management environment are ▲global supply chain restructuring (30.3%) ▲acceleration of digital transformation (29.7%) ▲ESG (environment, social, governance) management (21.7%) and changes in consumer trends (17.7%), in that order. Additionally, the entrepreneurial spirit most needed in the current management environment was identified as ▲creativity and innovation (40.6%), followed by ▲crisis response capability (29.7%) and ▲challenging spirit (12.0%).

The FKI interpreted this as meaning that the ability to respond to potential crises caused by global supply chain restructuring is becoming increasingly important, and that as digital transformation accelerates across industries, innovative thinking by business managers has become crucial.

Among South Korea's representative entrepreneurs who have demonstrated creativity and innovation needed in the current management environment, Chairman Chung Ju-yung was selected (34.3%). Other entrepreneurs named included Chairman Lee Kun-hee (21.1%), who grew Samsung into a global leading company, and his predecessor Chairman Lee Byung-chul (17.1%).

Data provided by the Federation of Korean Industries

Entrepreneurial Spirit Level Also Low Compared to Advanced Countries
Entrepreneurial Spirit Declines Across Generations

Seventy point three percent of business scholars expressed the opinion that South Korea's level of entrepreneurial spirit is lower compared to advanced countries. The reasons for South Korea's lower entrepreneurial spirit level compared to advanced countries were identified as ▲a social atmosphere that does not tolerate failure (23.2%) ▲negative perceptions of companies and entrepreneurs (17.1%) ▲preference for stable jobs among young and middle-aged adults (15.0%).

The evaluation of entrepreneurial spirit by generation in South Korea, on a scale of 10 points, was ▲before the 1970s (6.3 points) ▲1980s (6.3 points) ▲1990s (6.1 points) ▲2000s (5.7 points) ▲2010s (5.3 points), showing a declining trend. For South Korea to become an environment conducive to entrepreneurial spirit, the top priority was identified as ▲creating positive perceptions of companies and entrepreneurs (24.0%). This was followed by ▲providing opportunities and support for re-challenge after business failure (20.9%) and ▲easing regulations that restrict business activities (20.3%).

Yoo Hwan-ik, Director of Corporate Policy at the FKI, stated, "Since the results show that South Korea's entrepreneurial spirit has not reached the level of advanced countries, it is necessary to create an environment that can enhance entrepreneurial spirit. We must improve perceptions of entrepreneurs to raise entrepreneurial spirit, and at the same time, create a favorable environment for management through deregulation and flexibilization of corporate employment."

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