Roundtable Deregulation key to German firms in Korea
Korean-German Chamber of Commerce and Industry President Martin Henkelmann
By Martin Henkelmann
I would like to extend my sincerest congratulations to President-elect Yoon Suk-yeol. The Korean-German Chamber of Commerce and Industry (KGCCI) looks forward to trustful relations and fruitful cooperation with the new government.
Transitioning into a new role is always challenging in politics as in business. However, assuming responsibility for the 10th-largest global economy in these disruptive times is a Herculean task for which we wish the new administration good luck and farsightedness. Germany is the eighth-largest trading partner of Korea and German companies have been third in investing in the country last year. We see even more potential for the bilateral economic relations, particularly if the new government embraces the opportunities in three fields.
First of all, there is the topic of deregulation and the legislative framework. Our regular surveys and the yearly hundreds of exchanges with companies already active or interested in the Korean market clearly show concerns in these areas. Deregulation is important to enable businesses to actively participate in the market, to invest in innovation and overall to stimulate efficiency. All these lead to increased economic growth.
The second focal point is international trade. Korea has become a major player in international trade. It has established one of the largest networks of free trade agreements (FTAs) globally. While the rules-based international trade system has been key to the economic success of Germany and Korea, this system is increasingly under stress. International collaboration built on just rules and fair standards deserves attention and efforts from the incoming government, especially as the global challenges like combatting climate change can only be solved through multinational endeavors. Furthermore, modernizing some of the FTAs, like the highly successful Korea-EU FTA, would stand out as a forceful signal and impulse for wider and enhanced economic exchange between companies in market economies.
The third aspect I would like to mention might be surprising when coming from a business association: vocational training or in German “Ausbildung.” Skilled trainers provide practical knowledge to young trainees in companies while the trainees are receiving theoretical instructions in colleges in parallel. This dual education has proven to be extremely successful in Germany for decades and a KGCCI program jointly organized with the German car and truck companies has shown remarkable results in Korea over the past five years. Young people who have completed vocational training not only achieve financial independence in their early years, they also have excellent career opportunities directly moving on from training-education to permanent employment and thereby reducing youth unemployment. It has shown us that the system plays a significant role in creating sustainable jobs for young Koreans, which we see as a great achievement. Establishing a legal framework to facilitate vocational training blend into the Korean society would be highly beneficial.
KGCCI is looking forward to sharing its experience and collaborating closely with the new government for the benefit of the Korean and German companies, its employees and beyond.