[Inside Chodong] In Turbulent Times, Companies and Government Must Form a True One Team

Communication Between Public and Private Sectors Weakens Amid Political Turmoil
Fierce Competition Among Companies on the Global Stage
It Is Only Natural for Governments to Stand as Allies for Their Own Businesses

A former official in charge of trade policy recalled negotiations with the U.S. Trade Representative (USTR) as particularly memorable. During the talks, the U.S. side frequently paused to consult closely with their domestic companies, refining detailed strategies?a practice that felt unusual. It was almost as if employees from General Motors (GM) or Cargill were in the next room. The difficulty of the negotiations was likely influenced by the fact that the counterpart was a major power and that both public and private sectors were united in their efforts.

Although there may be differences in the detailed execution methods, I believe our officials share a similar mindset. When working for the government, it is natural to pursue public values while also serving the interests of one’s own citizens and companies. Laws not only prohibit certain actions but also encourage or mandate others, such as promoting industry or supporting corporate management. Administrative officials are professionals whose job is to uphold the law.

Our government leader once gave the impression of working for the country, but that impression completely vanished after contradictory behaviors surfaced during the unexpected declaration of martial law and the impeachment crisis. While most public officials quietly do their jobs diligently, the hierarchical nature of the organization means that simply being in public service can become a vulnerable position. We had believed society operated through a legitimate system, but we realized it can be destroyed anytime by the wrong decisions of political leaders or a small group of aides.

Though there has rarely been a peaceful time, the current situation faced by companies is more challenging than ever. The appreciation of the U.S. dollar, fueled by expectations of economic recovery and the return of strongmen, is a phenomenon all countries are experiencing. Amid this, the particularly sharp decline in our currency’s value is largely due to the recent unstable domestic political situation.

Exchange rate fluctuations affect corporate financial conditions favorably or unfavorably depending on the proportion of domestic and international business. The heightened uncertainty now is the worst-case scenario for companies. They must secure additional hedging tools and prepare multiple crisis response scenarios for unforeseen situations, which itself is costly. Calls to develop long-term management strategies and proactively prepare for future changes sound like idle talk in the current climate. Even Nissan, ranked eighth globally by sales volume, is reaching out to competitors as its survival becomes uncertain.

The U.S.-China hegemonic competition has become a constant rather than a variable, intensifying protectionist trends. Donald Trump, the U.S. president-elect, talks tariffs constantly. While it is understood that the intent is more to gain leverage in negotiations than to actually raise trade barriers, the counterpart has no effective means of response. China positions itself as a defender of free trade against the U.S., but it retaliates with trade sanctions whenever disputes arise. As corporate competition intensifies on the international stage, it has become natural for governments to act as allies. This is judged to be beneficial for all parties, provided it is done transparently and properly, rather than through corrupt collusion between politics and business.

A senior official from an economic ministry I recently met said they are always ready to assist and hoped companies would communicate their needs more clearly. Another high-ranking official lamented the weakened communication with businesses amid the political turmoil. This indicates that goodwill still exists throughout the public sector. We know that even with public-private cooperation, navigating these turbulent times is not easy. How long must we watch political strife that ignores the economy?

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