Seoul attracts ‘all-star’ lineup of CEOs

Private sector expects increasing role in strengthening economic recovery

By Kim Tong-hyung

It’s a lock that Barack Obama will be the most powerful individual visiting Seoul this year. But it remains to be seen whether he will be the most influential, as organizers of the Group of 20 meetings here anxiously await RSVPs from Steve Jobs and Bill Gates.

With or without the American technology icons, many of the world’s most powerful corporate leaders are to assemble in Seoul in November to discuss the priorities of the global business community and advise world leaders and finance ministers gathered for the G20 summit.

The all-star cast of chief executives (CEOs) will likely use the platform to air their concerns about protectionism and the possibility of “excessive” regulations on banks and other financial institutions, according to business officials here.

Their meeting, dubbed the “G20 Seoul Business Summit,” is slated for Nov. 10-11 at COEX, a major business convention center in southern Seoul, ahead of the G20 summit slated for Nov. 11-12 at the same venue.

The number of CEOs invited to Seoul has been set at 100, which roughly comes down to 4 to 5 representatives for each G20 country. Organizers, who say preparation is about “70 percent complete,” are reluctant to reveal the names of the high-profile attendees who have confirmed their commitment to the business summit so far.

However, The Korea Times has independently learned that the CEOs of U.S. chipmaker Qualcomm, Swiss food giant Nestle, British bank Standard Chartered, Germany’s Deutsche Bank, French energy company Total, Indian IT (information technology) outsourcing firm Infosys, and Japanese manufacturing titan Mitsubishi are among those who have booked their flights to Seoul. And there appears to be a competition between Korean corporate leaders to squeeze their names onto the who’s who list.

The CEO delegates are to exchange views about the private sector’s role in the global attempt for a job-rich recovery, while also looking to influence political leaders in their discussions for coordinating fiscal policies, financial sector reform, trade, development and innovation.

The agenda of the Seoul business summit will be divided into four main topics of jolting trade activity and investment; stabilizing financial systems; achieving “green” growth; and encouraging corporate social responsibility (CSR). The roundtable discussions will be followed by direct exchanges between business leaders and G20 political leaders, organizers said.

The corporate representatives will clearly have the ears of the G20 as the business community is expected to undertake the crucial role in the efforts to strengthen the economy as stimulus winds down.

Also to be discussed is establishing the global business summit as a permanent part for future G20 summits, allowing it to achieve the status as the main channel for private-sector input in global economic policies, organizers said, although declining to reveal the details of the program.

Trade-related issues garner attention “Each of the four main discussion themes of the Seoul business summit will be divided again into three sub-topics. The results of the roundtable discussions about the 12 themes will be delivered to the world leaders at the G20 summit for further discussions,” Sakong Il, chief organizer of the G20 Seoul summit, told reporters recently.

“The business summit in Seoul will provide a rare opportunity for the CEOs of world-leading corporations to come together with political leaders and discuss their urgent issues. The cohesion between the governments and private companies is crucial for building a more stable economic structure that is less vulnerable to turmoil.” The Seoul Business Summit will succeed the discussions from the “B20” business summit held on the sidelines of the previous G20 summit held in Toronto in June.

The Toronto business summit was participated in by 43 CEOs of industrial and financial firms like the Royal Bank of Canada, Britain’s GlaxoSmithKline, Spain’s Compania Telefonica and China’s Sinosteel.

The previous meeting between corporate leaders was clearly influenced by persistent Canadian calls for reducing government debt and halting the considerations for implementing a global bank tax.

The talks in Seoul are expected to touch on broader issues, according to organizers here.

Although corporate leaders in Toronto acknowledged the need for imposing more rules in the financial sector, they were also passionate in their disdain for a global bank tax or the creation of a fund that governments can tap in future crises.

The CEOs also called for the need for transparency and certainty in the efforts by governments in their discussions for a new framework of financial regulations, claiming that the continuing unpredictability is hurting markets, although they fell short of making specific recommendations.

The business summit in Seoul will focus on further advancing the talks for liberalizing trade and spurring investment, said Park Dae-shik, the head of international affairs at the Federation of Korean Industries (FKI), a key Korean business lobby.

Another priority is considering more ways to achieve the elusive balance between fiscal consolidation and growth.

The role of the business summit in the G20 platform is crucial, as countries will soon require private investment to replace policy stimulus as the source of sustaining recovery.

With governments close to being stretched to the limit, the responsibility for investment, growth and job creation is about to fall more heavily on the shoulders of the private sector and companies are acknowledging this, Park said.

“The center of discussions in the business summit will likely be about combating protectionism and addressing the different interests of companies in different countries. Balancing national interests will be tricky - countries like the United States and China have been combining their fiscal stimulus policies with new protective measures for their main industries, and Korean firms have been experiencing trouble entering the energy markets in countries such as India, so the meeting will be critical for commencing dialogue,” Park said.

“In regard of financial reform, it will be important to guard against the new regulatory systems impairing growth, as excessive burden on banks and other financial institutions will be eventually felt by the companies.”