Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
Foreign chambers speak out as Korean associations keep quiet
Representatives of foreign chambers of commerce in Korea listen to Deputy Prime Minister and Finance Minister Choi Sang-mok, left, during a meeting at the Korea Chamber of Commerce and Industry building in Seoul, Friday. Courtesy of Ministry of Economy and Finance
By Park Jae-hyuk
Extreme silence contrasts with previous statements on political issues
Foreign chambers of commerce in Korea have been expressing their opinions on President Yoon Suk Yeol’s short-lived martial law last week, a stark contrast to the unusually silent stance of Korean business associations on the matter.
Korean-German Chamber of Commerce and Industry CEO Martin Henkelmann explained the background of the latest political crisis to KPMG’s German office last week, elaborating on the opposition’s dominance at the National Assembly, the history of conservatives citing North Korean threats as reasons to crack down on voices of opposition and the corruption scandal involving first lady Kim Keon Hee.
He also presented a view that Yoon’s impeachment will have a limited impact on Korea’s industrial policies, denying there is any outflow of major investments from the country at this moment.
“I believe that the two parties are so united and quite close to each other, when it comes to industrial policies,” he said.
Mentioning the long-standing connections between Korean politics and family-owned conglomerates, the German lawyer added that large Korean companies are keeping out of the current political turmoil.
American Chamber of Commerce in Korea (AMCHAM) Chairman James Kim, who sent an email assuring members of Korea’s resilience hours after martial law was lifted, joined interviews with U.S. news outlets to emphasize the international business community’s confidence in Korea.
Acknowledging the seriousness of the current situation, he told Bloomberg this week that it was “interesting” that both Deputy Prime Minister and Finance Minister Choi Sang-mok and Trade, Industry and Energy Minister Ahn Duk-geun asked for a meeting with foreign businesspeople last Friday.
“They wanted to answer some questions we had at the same time and tell us about what they are doing,” Kim said. “The key for us was that we had the chamber heads from Europe, Japan and also China, and I think, in unison, all of us felt as if no company was saying, ‘no more Korea.’”
The French Korean Chamber of Commerce and Industry wrote on social media that foreign chambers voiced concerns during their meeting with the two senior economic policymakers and at the same time expressed their support and confidence in Korea managing the current situation efficiently and peacefully as it had done in the past.
Representatives of Korea's six largest business associations listen to Deputy Prime Minister and Finance Minister Choi Sang-mok, second from right, during a meeting at the Korea Chamber of Commerce and Industry building in Seoul, Dec. 4. Courtesy of Ministry of Economy and Finance
In contrast, domestic business lobby groups, which had spoken out on labor law reforms and various other political disputes related to the economy, have not issued any statements on the current situation, despite the ongoing disruptions to their respective events and members.
Doosan Enerbility, for example, had to scrap its plan to spin off Doosan Bobcat to place it under the control of Doosan Robotics, as an unexpectedly large number of its shareholders expressed their intent to exercise their appraisal rights following the abrupt stock price fall after the martial law fiasco.
On Tuesday, a presidential secretary scheduled to deliver congratulatory remarks at the Import Day celebration canceled his participation in the annual event of the Korea Importers Association.
Korea International Trade Association also celebrated Trade Day last Thursday without a president for the first time since 2016, when impeached President Park Geun-hye missed the event during the investigation into a political scandal involving her close confidant, Choi Soon-sil, who was accused of interfering in state affairs.
During the events, however, both associations remained silent on the political situation.
The Federation of Korean Industries’ press release on a meeting between business leaders from Korea and the U.S. in Washington on Tuesday (local time) omitted the fact that their joint statement mentioned “Korea’s challenging circumstances.”
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The Korea Enterprises Federation (KEF) denounced a strike organized by the Korean Confederation of Trade Unions in a statement released Tuesday, in which it described the current political situation with expressions such as “political uncertainty” and “social chaos,” while refraining from using the term “martial law.”
The Korean Metal Workers’ Union criticized the KEF in a statement referring to Yoon and his allies as insurrectionists.
“Why are businesses silent on the economic damage caused by the insurrectionists?” it asked the federation. “Didn’t you welcome the decree that bans strikes?”