[G20 Feature-contribution] Minister Choi Kyung-hwan G20 기고문

The Seoul G20 Business Summit is just around the corner. Along with the G20 Seoul Summit, this event will serve as a starting point for a shift in the world economy. No longer will the focus be exclusively on crisis response ― more than ever, it is necessary to build a new economic system for the post-crisis era.

Choi Kyung-hwan
Minister of Knowledge of Economy

By Choi Kyung-hwan

The Seoul G20 Business Summit is just around the corner. Along with the G20 Seoul Summit, this event will serve as a starting point for a shift in the world economy. No longer will the focus be exclusively on crisis response ― more than ever, it is necessary to build a new economic system for the post-crisis era.

In 2008, the financial crisis took a serious toll on the global economy. In response, countries around the world stepped up their policy cooperation efforts through the G20 Summit, and those efforts have set the world on the path to recovery.

But sustainable growth requires investment and employment, and it will take more than government stimulus packages to achieve those aims. It is up to the private sector to spearhead new economic growth strategies for the long term.

It is in this context that the Seoul G20 Business Summit is set to open, just ahead of the G20 Seoul Summit. The theme of the Business Summit is the role of business in sustainable and balanced growth; it is an opportunity for global chief executive officers (CEOs) to meet with national leaders and discuss a wide range of related issues. These will include trade, investment, finance, green growth and corporate social responsibility.

A total of 120 CEOs from 35 countries are to take part in the Business Summit. They will be representing global companies such as Shell, Hewlett Packard, Nestle and the Bank of America, to name just a few. Furthermore, incumbent and former chairs of the International Chamber of Commerce (ICC), which represents small and midsize enterprises, will travel all the way to Korea to attend. Sales figures for participating companies totaled $4 trillion in 2009 ― roughly 4.8 times Korea’s GDP for the same year.

The success of the participating companies alone is outstanding. What is more significant, however, is that the Seoul G20 Business Summit is an unprecedented means of cooperation between the private and public sectors. Such efforts are new, not only for Korea, but for the whole world. We do not want this Business Summit to be a one-time event. We hope it will evolve into a regular communication channel, one that fosters substantive discussion between participating companies and G20 leaders as well as among the companies themselves.

Since the first half of the year, participants have been drafting economic policy proposals at numerous working-level meetings. The final proposals will be presented to the national leaders at the G20 Summit. The leaders and CEOs will also sit down together at a Business Roundtable and discuss pressing matters of concern to the whole world. This innovative process is meaningful in that it can add more substance to the discussions among national leaders. It may also heighten their commitment to the implementation of whatever measures they do agree upon.

For this reason, the G20 finance ministers who met in Gyeongju this past October held the Seoul G20 Business Summit in high esteem in their Joint Declaration, identifying it as an exemplary effort to intensify cooperation between the public and private sectors. Furthermore, France, which will succeed Korea as the next G20 chair, has expressed its intention to benchmark the Korean Business Summit model. If the G20 Business Summit becomes an ongoing event, as we hope, Korea by taking the initiative will have created a whole new mechanism for public-private cooperation.

At the national level, the Seoul G20 Business Summit stands to have a powerful impact on Korean companies. This gathering of ``star’’ CEOs will enjoy the international media limelight, presenting a golden opportunity for our companies to conduct global marketing and branding activities. In a recent report, the Korea International Trade Association said it expects the Business Summit to increase exports 3.7 percent for large companies and 5.8 percent for small and midsize enterprises. Clearly we are closer than ever to the realization of our national dream of becoming ``Korea Premium’’ — that is, the first choice for foreign investors and multinational business partners.

Aside from these measurable economic benefits, we will also attain an invaluable intangible asset: a strong network composed of Korean companies and global businesses. To date, Korean companies have achieved much on the global stage. When it comes to networking, however, there is considerable room for improvement. Thanks to the Seoul G20 Business Summit, Korean businesspeople will have the opportunity to meet with global CEOs in person and can discuss solutions to the challenges at hand. In addition, they will gain a stronger position in the global business community by promoting promising sectors such as new and renewable energy.

The government is working diligently to capitalize on the Business Summit to highlight Korea’s massive economic potential and the excellence of its businesses. Korean businesspeople will have additional opportunities to meet with Business Summit participants through the various events we are organizing on the sidelines. Global CEOs will not be able to overlook Korea’s value as a prime investment destination.

I would like to take this chance to wish every success to participants in the Seoul G20 Business Summit, and to convey my high hopes for this grand event. I have no doubt that it will raise Korea’s profile within the international community, and that Korean businesses will make the most of it to forge new partnerships and access new markets.