Yoon Emphasizes to Global CEOs "Key to Overcoming Crisis is Supply Innovation through Digital Transformation" (Comprehensive)

President Yoon's Keynote Speech at B20 Summit
Urges Changes in Responses from Countries and Companies to Match Current Complex Crisis
Digital Transformation as a Core Axis of Supply Chain Innovation... "Continuous Business Generation"
Promises Active Support for B20 Role as a Global Leader of Korea

[Image source=Yonhap News]

[Bali (Indonesia) = Asia Economy reporters Ki-min Lee and Jun-hyung Lee in Sejong] President Yoon Suk-yeol, on a Southeast Asia tour, stated on the 14th that the key to overcoming the global complex crisis lies in 'supply innovation through digital transformation.' Since this crisis originated from the supply side, the government’s role should shift to enable policies that promote private-sector-led economic development, while private companies must also pursue innovation through digital transformation.

President Yoon made these remarks during his keynote speech titled "The Role of Corporations in Overcoming the Global Complex Crisis and Global Cooperation in the Era of Digital Transformation" at the B20 Summit held in Bali, Indonesia.

The B20 Summit is a private-sector forum launched in conjunction with the 2010 G20 Summit held in Seoul. Key business leaders from G20 member countries attend to identify and adopt policy agendas necessary for the global economy. In Korea, the Federation of Korean Industries has represented the domestic business community at the B20 Summit annually.

The current complex crisis has led to calls for a change in the government’s role due to the contraction of supply capacity. Unlike the 2008 global financial crisis and the 2020 pandemic crisis, which were characterized by financial system collapse and demand contraction due to lockdowns respectively, this crisis involves supply chain disruptions during pandemic recovery and various geopolitical conflicts, requiring different remedies.

Regarding this, President Yoon said, "I have always believed and emphasized that we can overcome crises by transitioning the economic system to be private-sector-led and market-centered to strengthen the economic structure," adding, "We have boldly innovated regulations that restrict corporate investment and worked to create a business-friendly environment."

He continued, "I believe that unnecessary government spending should be drastically reduced to restore fiscal soundness and that fiscal policy should not crowd out the private sector," emphasizing, "Moreover, the government is significantly increasing support for research and development (R&D) investments in science and technology that are difficult for companies to handle independently, as well as for nurturing talent in advanced industries."

He also expressed the view that digital transformation will be a core pillar of supply chain innovation in the private sector. President Yoon stated, "Digital technology, combined with existing industries and data, continuously generates new businesses by reducing costs and creating new value," and stressed, "Digital transformation is the most emphasized aspect of the Korean government’s 'private-sector-led growth' initiative."

Regarding the Korean government’s digital transformation efforts, he mentioned ▲ regulatory innovation and the establishment of a self-regulatory environment ▲ education and vocational training for digital-era talent ▲ focused support for core digital technologies such as artificial intelligence (AI), next-generation communications, and cybersecurity ▲ and policies promoting a digital platform government.

President Yoon particularly reiterated that the digital ecosystem must be open to everyone and that data access should be fair. He urged, "To enrich human life through supply-side innovation using digital technology, efforts must also be made to realize universal values in the digital space." In September, during his attendance at the United Nations General Assembly in New York, he visited New York University and proposed that the world should join in creating and maintaining a new digital order where universal human values such as freedom, solidarity, and human rights can be realized in the digital world. Regarding this, President Yoon said, "I believe B20 is the optimal public forum to discuss such a global digital order."

On the role of B20 participating companies, he said, "We understand the digital world better than anyone and have the responsibility to create a desirable digital order," expressing hope that "B20 will take the lead in establishing a digital order that transcends borders, ensuring no one is left behind and that the benefits of the digital era are shared by all humanity."

He clearly stated Korea’s position to lead G20-level discussions on building a new digital order and actively support the implementation of this through close consultations between B20 and G20.

President Yoon said, "It is time not only to discover B20’s unique global business cooperation agendas but also to build stronger partnerships among companies through B20. Through this, I hope B20 will establish itself as a core pillar of multilayered cooperation for global supply-side innovation," and added, "The Republic of Korea, as a global leader, will support and cheer on B20’s active role."

About 2,000 people attended, including G20 member country leaders and senior officials, CEOs, and heads of major economic organizations. From Korea, President Yoon, Minister of Trade, Industry and Energy Lee Chang-yang, Federation of Korean Industries Chairman Huh Chang-soo, Hyundai Motor Chairman Chung Eui-sun, and KB Financial Group Chairman Yoon Jong-kyu participated.

Besides President Yoon, major national leaders such as Indonesian President Joko Widodo and Canadian Prime Minister Justin Trudeau delivered keynote speeches at the B20 Summit. Other key speakers included Chairman Huh, Foxconn Chairman Liu Yangwei, HSBC Chairman Mark Tucker, and Mitsubishi Heavy Industries Chairman Seiji Izumisawa, who discussed global economic recovery measures. Tesla CEO Elon Musk (participating virtually), Amazon Chairman Jeff Bezos, and former UK Prime Minister Tony Blair also joined via video conference.

Meanwhile, Indonesia, the B20 chair this year, plans to compile policy recommendations in seven areas including trade and investment, finance, and infrastructure based on the two-day discussions. Indonesia will then deliver the B20 policy recommendations to the G20 member country leaders.

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