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| McKinsey & Company Global Managing Partner Bob Sternfels speaks in a video address at the 2022 Korea Times Forum at the Korea Chamber of Commerce and Industry (KCCI) building in Seoul, Tuesday. Korea Times photo by Shim Hyun-chul |
McKinsey chief advises country to harness strength in technology
By Park Jae-hyuk
Korea should take advantage of its strength in technology to take the lead in sustainability and digital transformation, both of which are viewed by global leaders as the key topics of our time, according to Bob Sternfels, the global managing partner of McKinsey & Company.
Regarding the two topics as the key drivers and essential prerequisites for the future of business, the head of the world's top consulting firm expressed his confidence that the Korean government will help build a strong and dynamic economy as a powerful example for the rest of the world.
"It is time for Korea to be the world's lighthouse, both across sustainability and digital," he said in a pre-recorded video address during the 2022 Korea Times Forum at the Korea Chamber of Commerce and Industry (KCCI) building in Seoul, Tuesday.
Sternfels acknowledged that a massive scale of costs could make it difficult for Korea's private sector to integrate environmental, social and corporate governance (ESG) principles into their operations and develop roadmaps to reducing carbon emissions, as well as for the Korean government to fulfill its promise made last October to reduce greenhouse gas emissions from 26 percent to 40 percent of 2018 levels by 2030.
He cited his company's research that showed almost $9 trillion in capital spending will be needed annually for the world to reach net-zero by 2050.
"Korea is a top five country in Asia as you all know, and it's in the 10 highest emitting countries globally," he said.
The McKinsey chief, however, expected Korea to be able to harness its natural strength in technology and innovation to lead in climate tech, which he viewed as the single most important contributor to the decarbonization transition.
"Korea is in the global vanguard of the use of hydrogen for fuel," he said. "Hyundai Motor, for example, developed the world's first commercial fuel cell electric vehicle back in 2013."
He added that the transition to a net-zero economy will shift the competitive landscape of key industries in Korea, from semiconductors to electronics, shipbuilding and car manufacturing.
From that standpoint, he called on leaders to go on the offensive and create new business opportunities here.
The American CEO also saw that Korea has a huge opportunity in terms of digital transformation, which he said is crucial for businesses to solve problems and find new opportunities.
He noted that the COVID-19 pandemic has increased the importance of digitalization, citing his company's research which showed that 64 percent of business leaders believe that their companies need to build new digital businesses to stay economically viable by 2023.
Recognizing Asian corporations for being faster at adopting technologies than anywhere else in the world, Sternfels said that there is an opportunity, especially in Korea, to capitalize on the leading foundation the country has in technology, technology infrastructure and digital adoption.
For example, he mentioned the world's fastest internet speeds, the world's first implementation of 5G mobile networks nationwide, leading efforts to harness trustworthy artificial intelligence and internet penetration at 98 percent of the population.
"Korea has the foundation to lead the world with so many technological advantages and you are already doubling down on this from the public and the private point of view," Sternfels said.
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