Korea's business chiefs call for big reforms in New Year's messages

Korea's business leaders urged bold reforms to address challenges like slow growth and geopolitical tensions in their New Year's messages.

Korea Chamber of Commerce and Industry Chairman Chey Tae-won [KOREA CHAMBER OF COMMERCE AND INDUSTRY]

The heads of Korea's business associations called for bold actions and necessary reforms to navigate a multitude of challenges ahead in their New Year's messages.

Korea Chamber of Commerce and Industry (KCCI) Chairman Chey Tae-won urged the Korean businesses to establish “big, hairy and audacious goals” in 2024 to bear fruits in the long term.

“Businesses should not follow imminent profit but should look into far future,” Chey said in his greetings for 2024.

“We should sow the 'seeds of future industry' looking into the next 20 or 30 years, because pre-emptive investments that have been made decades ago resulted in today's fruitful outcomes of chips and batteries.”

He pointed to the “regional platform” that KCCI will establish this year where representatives from businesses as well as government and academia can gather to discuss the solutions to complex issues such as slow economic growth, diminishing population and regulations.

“This year, I plan on forging new networks as well as fortifying the existing ones,” Chey said. “I will establish a consultative body with various countries to develop new markets.”

Federation of Korean Industries Chairman Ryu Jin [JOONGANG PHOTO]

Federation of Korean Industries Chairman Ryu Jin stressed the urgency for industrial and labor reforms.

“We can no longer delay finding solutions to the structural problem that is undermining Korea's economic growth as well as the decline in the working population amid low birthrates and aging society,” Ryu said in a New Year's message.

“Through labor market flexibilization, we should raise participation of female economic activity and attract a skilled foreign workforce.”

Korea International Trade Association Chairman Koo Ja-yeol [KOREA INTERNATIONAL TRADE ASSOCIATION]

Korea International Trade Association (KITA) Chairman Koo Ja-yeol pointed to the risks and opportunities that can be created through the rapidly changing global supply chain.

“KITA will lead cooperation among private businesses to advance into strategic markets in response to the new trade order,” Koo said in a New Year's message.

“We will support and fortify global marketing that targets markets with rich resources and large consumers. We will provide information in a timely manner to companies about supply chain changes and global trade orders such as the conflict between the United States and China.”

Korea Enterprises Federation Chairman Sohn Kyung-shik [KOREA ENTERPRISES FEDERATION]

Korea Enterprises Federation (KEF) Chairman Sohn Kyung-shik called for comprehensive reform to the labor market in order for Korean companies to best their cutthroat competitors.

“Raising the company's vitality is the only fundamental way to overcome crisis and leap forward, because free economic activity from businesses is the only way to raise people's quality, as it enhances investment and the number of jobs,” Sohn said.

“Korean companies should be able to compete on the same level as other companies on a global stage, and in order to do that, we should rearrange outdated customs and systems, including the labor market.”

Shinsegae Group Vice Chair Chung Yong-jin [SHINSEGAE]

Shinsegae Group Vice Chair Chung Yong-jin’s core theme for the new year is to enable consumers to buy what they want with “one less click.” The retail giant's ability to match its customers' exact tastes could strengthen its competitive edge and bottom line.

“This seemingly trivial ‘one-click gap’ can shift customers’ sentiments and alter their consumption patterns,” Chung said in a statement. “To achieve this goal, we need a comprehensive overhaul of existing systems and working methods.”

Chung emphasized the need for the corporate management to be rid of task duplication and unnecessary chores, “to eliminate everything except the ultimate goal of realizing customer value and the overall profit of the Shinsegae Group.”

In management, Chung said, Shinsegae’s new work ethic should reflect the theme of “one more step” in review and execution during the management’s decision-making process.

“’One more step’ is an essential prerequisite in management, to scrutinize potential risks and structural issues at every step.”

HD Hyundai Chairman Kwon Oh-gap [HD HYUNDAI]

HD Hyundai Chairman Kwon Oh-gap urged employees to work as if they are part of a “national sports team” to help the shipbuilding company move forward through uncertain global conditions.

“It seems that all the management environments around us will be shrouded in fog,” Kwon said. “The uncertainty is brought by the changes in the global energy landscape due to its push for decarbonization, along with the instability from the ongoing Russia-Ukraine war and geopolitical tensions between the United States and China.”

Kwon expects the country to enter a low-growth phase, and, in order for the company to survive, it needs to come up with the best products.

“We need to adopt the mindset of being ‘national representatives' who create those products,” he said. “To achieve this, we must discard the notion that being average is sufficient enough. A corporate culture that settles for mediocrity cannot lead the growth of a company and will ultimately become unsustainable.”

BY JIN EUN-SOO, LEE JAE-LIM [jin.eunsoo@joongang.co.kr]