Huh Chang-soo, Former Chairman of FKI, Says "A Renewed Mindset Needed for the New Year"

FKI 2023 New Year's Address Announcement

Huh Chang-soo, Chairman of the Federation of Korean Industries / Photo by Federation of Korean Industries

[Asia Economy Reporter Kim Pyeonghwa] Huh Chang-soo, chairman of the Federation of Korean Industries (FKI), emphasized the attitude of "Hwambu Jaksin" for the new year. Like the four-character idiom meaning to cut out the rotten part and replace it with something new, he argued that comprehensive structural reforms are needed to enhance domestic competitiveness and leap forward as a global economic advanced country.

Chairman Huh stated in his New Year's address on the 29th, "The Korean economy stands at a crossroads between growth and decline in the new year."

The FKI pointed out that the world experienced aftereffects of COVID-19 this year. They explained that liquidity injected into the market caused inflation, and global demand shrank due to interest rate hikes in major countries such as the United States. Rising raw material prices also had an impact.

The domestic economy also experienced the "three highs" phenomenon of high inflation, high exchange rates, and high interest rates in this context. Corporate profitability deteriorated as well. The trade balance recorded a deficit for eight consecutive months, with the annual deficit reaching a record high.

The FKI expects the domestic and international economic environment to remain uncertain in the new year. They explained that the new Cold War era has arrived as conflicts between the U.S. and China and the Russia-Ukraine war intensified confrontations between countries and blocs.

Economic slowdown at home and abroad has increased difficulties for vulnerable groups such as self-employed individuals and marginal companies. Additionally, structural problems in the domestic economy such as low birth rates, aging population, aging key industries, and declining potential growth rates have emerged as urgent issues to be resolved.

The FKI emphasized that the public, political circles, and businesses must become one team to solve these challenges. They added that the government and National Assembly should strive to improve the business environment, including regulatory reforms, so that private creativity and innovation can flourish on the global stage.

The economic community, including the FKI, announced plans to devote efforts to improving corporate health and strengthening industries. They also pledged to turn this crisis into a new opportunity through active investment and employment.

Chairman Huh said, "As a member of the economic community, I will do my utmost to revive the entrepreneurial spirit that has created the miracle of the Korean economy and to discover future growth engines for the Republic of Korea."

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