Policymakers, corporate CEOs need to seek solutions together
Finance Minister Kim Dong-yeon has met with Samsung Electronics Vice Chairman Lee Jae-yong. Kim's visit to Samsung's chip-making plant in Pyeongtaek, south of Seoul, Monday, drew particular attention as it was the first one-on-one meeting between the government's top economic policymaker and the de facto chief of Korea's largest family-controlled conglomerate, or chaebol.
Kim stressed two things during the visit: First, Samsung should take the lead in chaebol reform by improving its ownership structure and stemming unfair business practices. Second, the global tech giant needs to spearhead innovation to create new growth engines. Vice Chairman Lee asked the government to relax regulations in the biotechnology and other sectors.
The Kim-Lee meeting came amid criticism about the weakening will of the Moon Jae-in administration to reform chaebol, amid an economic slowdown. Conscious of such skepticism, especially among progressives, Cheong Wa Dae had reportedly told Moon's economic czar "not to beg for corporate spending."
Such being the case, Kim made no specific requests concerning corporate spending and job creation. Nor did Lee announce any detailed plans on investment and employment. It is not desirable for economic policymakers to meet CEOs of private businesses and make demands that can affect their management. Such decisions should be left to corporate boards of directors.
That does not mean, however, economic officials and business leaders should avoid meeting each other. Bureaucrats need to meet the representatives of the business community more often to listen to their opinions on domestic and foreign business trends, including deregulation and industrial policies, and reflect their recommendations in policies.
Korea's economic outlook appears increasingly bleak. Investment has fallen for four consecutive months for the first time in 18 years, and job growth has stood at the 100,000-range for five months in a row. The U.S.-China trade war shows no signs of easing. All these trends require the government and businesses to get together more frequently to seek solutions.
If businesses feel forced to announce investment and employment plans after such meetings, however, the public will hardly be able to believe their spontaneity. However urgent the situation might be, it is desirable for government officials and business leaders to go with the flow.
Finance Minister Kim Dong-yeon has met with Samsung Electronics Vice Chairman Lee Jae-yong. Kim's visit to Samsung's chip-making plant in Pyeongtaek, south of Seoul, Monday, drew particular attention as it was the first one-on-one meeting between the government's top economic policymaker and the de facto chief of Korea's largest family-controlled conglomerate, or chaebol.
Kim stressed two things during the visit: First, Samsung should take the lead in chaebol reform by improving its ownership structure and stemming unfair business practices. Second, the global tech giant needs to spearhead innovation to create new growth engines. Vice Chairman Lee asked the government to relax regulations in the biotechnology and other sectors.
The Kim-Lee meeting came amid criticism about the weakening will of the Moon Jae-in administration to reform chaebol, amid an economic slowdown. Conscious of such skepticism, especially among progressives, Cheong Wa Dae had reportedly told Moon's economic czar "not to beg for corporate spending."
Such being the case, Kim made no specific requests concerning corporate spending and job creation. Nor did Lee announce any detailed plans on investment and employment. It is not desirable for economic policymakers to meet CEOs of private businesses and make demands that can affect their management. Such decisions should be left to corporate boards of directors.
That does not mean, however, economic officials and business leaders should avoid meeting each other. Bureaucrats need to meet the representatives of the business community more often to listen to their opinions on domestic and foreign business trends, including deregulation and industrial policies, and reflect their recommendations in policies.
Korea's economic outlook appears increasingly bleak. Investment has fallen for four consecutive months for the first time in 18 years, and job growth has stood at the 100,000-range for five months in a row. The U.S.-China trade war shows no signs of easing. All these trends require the government and businesses to get together more frequently to seek solutions.
If businesses feel forced to announce investment and employment plans after such meetings, however, the public will hardly be able to believe their spontaneity. However urgent the situation might be, it is desirable for government officials and business leaders to go with the flow.
