"Global Economic Crisis, Need to Create an Environment for Autonomous Decision-Making in the Private Sector"

'Seminar on the Complex Industrial Economic Crisis and Overcoming Strategies'

Sung Yoon-mo, Chairman of Korea Polytechnic University (Former Minister of Trade, Industry and Energy) / Photo by Moon Ho-nam munonam@

[Asia Economy Reporter Kiho Sung] As the global economy faces a recession phase, there is a call to create an autonomous decision-making environment in the private sector to foster creativity and self-directed capabilities for overcoming the crisis.

On the 12th, three organizations?the Korea Industrial Federation Forum, the Global Industrial Competitiveness Forum, and the Korea Industry 4.0 Association?jointly held a seminar on the theme of "Complex Industrial Economic Crisis and Overcoming Measures" at the Automobile Industry Hall.

Sung Yoon-mo, Chairman of Korea University of Technology and Education (former Minister of Trade, Industry and Energy), diagnosed the paradigm shift in the global economy and the reality of the ongoing global economic crisis through his presentation titled "The Path Korea’s Industry Must Take: An Unshakable Industrial Power." He examined the current status of our industry in response to this and proposed the "Korea Industry Grand Transformation Strategy," which centers on ‘strategic industry development,’ ‘leading the global supply chain,’ and ‘industrial structure/institutional innovation’ as industrial sector response measures to overcome the crisis.

Jung Manki, Chairman of the Industrial Federation Forum, stated in his presentation "Industrial Environment Changes and Response Strategies," “During the COVID-19 spread period, measures taken by governments worldwide and the prolonged Russia-Ukraine war have caused global inflation and supply shortages, increasing uncertainty in the world economy. Countries have responded with quantitative tightening or interest rate hikes, but the side effects are expected to be significant.” He added, “For us, with high external dependence, we are already facing the world’s highest level of stock price declines and a depreciation of the Korean won against the US dollar, while interest rates are rising sharply, raising concerns about future economic recession and worsening corporate liquidity.”

He noted, “Government responses also seem difficult,” pointing out, “Due to the previous government's large-scale fiscal deficit, it is hard to expect a fiscal role, and the timing is not appropriate. Considering the inefficiency of the public sector, it is unlikely to be effective.”

Furthermore, he said, “The problem is that flexible market responses are also difficult,” explaining, “With near-impossible layoffs, the 52-hour workweek system, difficulties in utilizing non-regular workers, illegalization of dispatched or substitute labor, and the high impact of minimum wage, flexible labor market responses are challenging. Detailed regulations introduced like a spider web in various fields?such as regulations on medium-sized suitable industries, private platform business restrictions, limitations on private rental contracts, and regulation-centered greenhouse gas reduction?may hinder the public’s voluntary and creative responses to environmental changes.”

He emphasized, “To overcome the crisis, an autonomous decision-making environment in the private sector must be created to allow creativity and self-directed capabilities to flourish,” adding, “It will be difficult to respond to uncertain environmental changes if the state decides every detail for the private sector.” He urged, “It is time for not only the government but also the National Assembly, which holds legislative power, to actively pursue regulatory reform.”

In the designated discussion that followed, chaired by Yoon Won-seok, CEO of MetaGlobe, numerous industry professionals actively working in the field?including Kim Sang-woon, CEO of Taekyung Accounting Corporation; Ban Won-ik, Chairman of the Audit Committee at Osstem Implant; Song Hye-ja, Chairwoman of Wooham Corporation; and Cha Young-hwan, President of Korea Trade Information & Communication?participated and shared diverse opinions on the previously presented topics based on their extensive experience.

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