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| Finance Minister Kim Dong-yeon, second from left, shakes hands with Samsung Electronics Vice Chairman Lee Jae-yong ahead of their meeting at the company's semiconductor plant in Pyeongtaek, Gyeonggi Province, Monday. Yonhap |
By Park Hyong-ki
The much anticipated meeting between Finance Minister Kim Dong-yeon and Samsung Electronics Vice Chairman Lee Jae-yong, Monday, fell short of expectations.
The two met as planned at the tech giant's Pyeongtaek, Gyeonggi Province plant that develops and produces semiconductors for the global market.
The meeting came amid a sense of urgency that Korea needs to revive corporate investment as the Moon Jae-in administration has failed to produce tangible results from its income-led growth policy.
Kim's plan to meet executives of any company, whether big or small, signaled a change in policy to focus on innovation, leading the hype that Samsung in coordination with the administration would announce a huge investment plan that would hopefully create a large number of jobs.
However, the meeting did not live up to expectations as Kim only wished Samsung all the best as the top company to "lead innovation" and be a "role model" in shared growth.
"Our economy is at a critical crossroads. Samsung's role is important in leading change in our economic paradigm," Kim told Lee at their meeting.
"We hope Samsung can be a model by growing side-by-side with other smaller companies."
Kim also told reporters the two discussed issues concerning foreign investment and biotechnology, declining to reveal more details.
There was speculation that Samsung would unveil an investment plan worth millions of dollars following the government's desperate attempt to revise its policy to revamp the economy. A local liberal news outlet reported Cheong Wa Dae ordered the top economic policymaker not to appear like he was "begging for money."
Cheong Wa Dae said in a press briefing Monday that it had, in fact, talked in advance with Finance Minister Kim regarding the schedule of Samsung's investment announcement and its effectiveness.
However, it added Jang Ha-sung, its chief policy adviser, did not tell Kim "not to make the meeting look like this administration was begging."
Kim had told reporters before his meeting with Lee that the government has and will never force companies to come up with investment and employment plans for the economy.
Kim and Lee's supposedly "sugarcoated" meeting with Jang's possible clash with Kim over his ministry's economic policy has raised questions yet again as to who and which state agencies are running the country's economic policies -- Cheong Wa Dae or the ministry?
It is a well known fact that Kim and Jang do not see eye to eye on issues such as the minimum wage and corporate-led innovation.
Jang has been for chaebol reform and increasing the wage to enhance wealth redistribution. Kim has called for a slowdown in the rate of the wage increase, while emphasizing the importance of the private sector in leading innovation and job creation.
The minister indicated last May that the finance ministry should be "at the center of economic policymaking" amid news of possible conflicts of interest with Cheong Wa Dae's economic team.
Kim had already met with executives from conglomerates including LG, Hyundai Motor, SK and Shinsegae.
His visits to the nation's largest conglomerates have significant implications from two aspects.
First, many expected the rare meetings to become a turning point for strengthening communication between the government and business. Secondly, they could be a yardstick for the future course of the Moon Jae-in administration's economic policies.
Against this backdrop, analysts say the meetings should have paved the way for the administration to listen more to businesses, and reassess and redirect its policy.
"The meetings should have provided a catalyst for the government to refine its relationship with the private sector. This is because without the private sector, it will not be able to sustain growth just by increasing wages," said Yun Chang-hyun, an economist at the University of Seoul.
