Business lobbies call for new growth engines amid rising uncertainties
From left are Federation of Korean Industries Chairman Ryu Jin, Korea International Trade Association Chairman Koo Ja-yeol, Korea Chamber of Commerce and Industry Chairman Chey Tae-won and Korea Enterprises Federation Chairman Sohn Kyung-shik. Courtesy of each business lobby
Leaders of the nation’s business lobbies stressed the critical necessity of discovering new growth engines, as a global economic downturn and international trade conflicts are feared to continue weighing on the economy throughout next year, they said in a New Year’s address, Thursday.
The heads of the nation’s four major business lobby groups voiced a consensus that the economy will continue to be exposed to external uncertainties amid growing risks of global supply chain disruption. The prolonged high-interest rate here and abroad also poses a lingering business risk to major conglomerates and small- and medium-sized enterprises here.
“There is an urgent need for us to find new growth drivers and technologies, so as for Korea to take the initiative in digital transition,” Federation of Korean Industries Chairman Ryu Jin said. “The global economy is widely projected to report weaker growth than last year due to economic slowdown in the United States and China.”
He urged Korea to focus on resolving structural problems – such as an aging population and the low birthrate – which he argued are two key factors hampering economic growth here.
“We need to build a more flexible labor market and increase productivity,” he said. “Business circles should also help boost women’s economic participation, while at the same time sparing no efforts in attracting quality overseas manpower.”
Korea International Trade Association Chairman Koo Ja-yeol underlined the importance of the economy to regain trade vitalization.
“Each country push for closed policies to protect their state-of-the-art technologies, so the global supply chain is rapidly changing, which comes as an opportunity and a risk,” Koo said. “The association will do its best to help Korea’s exports to regain vigor by helping our member companies to reinforce their business competitiveness.”
Korea Chamber of Commerce and Industry Chairman Chey Tae-won also shared the skeptical economic outlook for next year, triggered by multiple risk factors such as a falling productive population and aging industrial structure.
“All such matters are closely linked with one another,” Chey said. Korea needs to elevate partnerships among businesses, workers and the government to resolve the intertwined social and economic matters, according to him.
Korea Enterprises Federation Chairman Sohn Kyung-shik brought up the agenda of labor reform and deregulation to drive innovation in business circles.
“An intensive labor reform is required to develop the nation’s irrational practices and policies between labor and management,” Sohn said. “On top of that, Korea should also abolish unnecessary regulations getting in the way of innovation in the new and cutting-edge tech areas.”