Jeju Summer Forum

The biggest annual biz gathering hears from various speakers on new ideas and world in general
'The 21st Jeju Summer Forum'the biggest annual summer gathering for biz executives both at home and overseas took place at Jeju Shilla Hotel on Jeju Island July 23-26 with some 1,000 CEOs and biz executives at home and abroad attending the business forum. Invited speakers at the forum included Deputy Prime Minister and Finance and Economy Minister Kwon O-kyun, Minister of Commerce, Industry and Energy Kim Young-ju, Chairman Cho S.R. of the Korean Federation of Industries, Chairman of the Korea Chamber of Commerce, and Industry Sohn Kyung-shik, Vice Chairman Cho Jung-nam of SK Telecom and Chancellor Han Seung-joo of Korea University.
Deputy Prime Minister and Finance and Economy Minister Kwon O-kyu spoke on 'The direction of economic policies in the age of FTAs.'The free trade agreements will not only expand Korea's foreign trade, but also provide an opportunity for Korea to be a a full-fledged capitalistic advanced country, the top economic policymaker of the country said.
The Korean economy's continues high growth rates achieved in the past several decades to become the 12th largest economy in the world has been owed to the quantitative introduction of both capital and labor.
The country lagged behind advanced countries in terms of technology and know-how but it developed a catch-up model to close the gap with advanced countries in a short time. Korea still has a lot to catch up with advanced countries, although she is in shoulder-to-shoulder in terms of quantity.
The FTA with the U.S. will expedite Korea's liberalization if its economy and competition will grow tougher at home and it will also lead to reform in various sectors of the country including economy and social and through them spur the country's advancement in a wide spectrum of society. It will also find for us new growth engines to take care of the slowing down of the economic growth brought on by the rising number of senior citizens and the economic maturity. But it will not be easy with many difficulties on the road. Some major issues will need consensus agreement between the government and society and the Participatory government led by President Roh Moo-hyun is in its final year of rule with the election scheduled at the year end.
What is needed at this time is the early parliamentary approval of the Korea-U.S. trade agreement. We need the support of the business community to have the FTA get parliamentary approval within this year.
FKI Chairman Cho S.R. in his speech, winding up the forum, said he is so glad to conclude this year's forum with many of you from various sectors of the country, especially, the business community. He hoped for an early release of Korean hostages held by Taliban in Afghanistan. He would like to particularly thank the speakers who delivered meaningful speeches at the forum.
He said the growth of the Korean economy has been at the rock bottom in Asia, except Japan, falling behind world average and plummeting to the 12th in the world and further to the 13th last year. We should endeavor together to pull us out of the doldrums and find ways to recover overcoming such obstacles in our way as high oil prices, and the appreciation of Korean currency.
We should try to find new growth engines through creativity and reform, strengthening ourselves to overcome tough competition because those that don't are sure to fail. First, the companies should step cp R&D activities to develop new technologies. Wages are too high and copying others'technologies have faced the limit and China is trying to catch up with us. We have to develop technologies and upgrade the quality of our goods to survive from competition. POSCO, the No.5 steel maker in the world, increased its gap with rival steel makers by a decade with its new technologies, which is a good example of what we should do. Second, it is the life cycle of a product has been shortened and we ought to take the fact into account. Third is the development of new products and new markets.
Chairman Masahiro Sakane of Komatsu Group of Japan, said Komatsu, a heavy equipment maker, has been a rival to Caterpillar of the United States for long time. At one time, many said Komatsu would go out of business, but it has not only survived, but expanded its operation finding new areas of growth. The company posted 1.9 trillion yen in sales revenue last year on net profit of 244.7 billion yen, a change from 2001 when the company lost more than 100 billion yen. The company has plants all over the world with just 50 percent of its sales coming from Japan and the rest overseas.
He said China is the most promising market for its products, including construction equipment and industrial equipment including parts for automobiles. He said demand for construction equipment will continue to grow as the world population is increasing with the need for the construction of urban cities. nw

FKI Chairman Cho S.R. opens Jeju Summer Forum July 23 with a speech at Shilla Hotel in Jeju Island.