[New Year's Address] Chairman Chey Tae-won: "Activate Partnerships Where the Private Sector Proposes and the Government Supports"... Government-Led Corporate Policies Are Meaningless

New Year's Address 2022 by Chairman of the Korea Chamber of Commerce and Industry
Government Support Needed for Corporate Challenges like US-China Conflict and Supply Chain Restructuring
Past Approach of Government Leading and Businesses Following Is Meaningless

Choi Tae-won, Chairman of the Korea Chamber of Commerce and Industry

[Asia Economy Reporter Hwang Yoon-joo] Choi Tae-won, Chairman of the Korea Chamber of Commerce and Industry (KCCI), emphasized the need to redefine the 'private partnership' between the business community and the government in his 2022 New Year's address. This is interpreted to mean that, rather than the existing approach where the government leads and companies follow, the government should support companies?who are more sensitive to changes such as US-China competition and supply chain restructuring?in overcoming difficulties they face in the global market. He also stated that companies must actively practice ESG (Environmental, Social, and Governance) management to proactively address challenges like low birth rates and climate change.

In his '2022 KCCI Chairman's New Year's Address' on the 30th, Chairman Choi said, "(In the new year) I hope the approach where the private sector proposes and the government supports will become more active."

He explained, "Until now, public-private cooperation has often taken the form of the government leading and companies following. However, for more companies to take interest in new roles or create successful business models, it is important for the nation and society to listen attentively to the concerns and solutions of the corporate sector."

He continued, "Especially in international competition, it is crucial that private sector issues are well communicated to the government and that the process from devising countermeasures to solving problems operates swiftly and effectively," emphasizing, "I hope the 'public-private partnership' advances to the next level."

Chairman Choi's emphasis on a new 'private partnership' stems from his assessment that the conditions for the new year are difficult and uncertain. He summarized the 2022 business environment as "‘Baekcheokgandu Jinilbu (百尺竿頭進一步)’," meaning "advancing one step further while standing on the edge of a hundred-foot pole."

This signifies that companies face tough situations such as the need to shift the manufacturing paradigm to carbon neutrality in response to climate change and competition in the Fourth Industrial Revolution, including digital transformation. Moreover, new challenges in international relations, such as geopolitical risks like US-China hegemony competition and changes in the global value chain, are currently underway.

Chairman Choi also stated that companies must recognize and practice new roles in this situation.

He said, "In the past development era, creating large profits, generating jobs, and paying substantial taxes was considered 'business patriotism.' Now, times have changed, and the role of companies must also change."

He reiterated, "It is important to align all aspects of corporate management with societal expectations. Companies must not only conform to solutions for national challenges like low birth rates and global challenges like climate change but also create new growth opportunities within these challenges as their new role."

He also mentioned that a 'motivation mechanism' is important so that companies can take interest in and practice these new roles.

Chairman Choi said, "Whenever humanity has faced epochal challenges, companies have contributed to changing the world by applying their own know-how and creativity to find solutions. The key is 'how to motivate companies.'"

He added, "If the government establishes a motivation mechanism that positively influences corporate performance within a broad framework, companies will internalize national challenges and mobilize all available tools to solve them. This will serve as a catalyst for the development of new technologies, new markets, and new industries."

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