Call for Increased Investment

Pres. Lee declares economic woes can be beaten with more investment and unity between government, business and the public

The Korea Chamber of Commerce and Industry held a New Year's ceremony at COEX auditorium on Jan. 5 with President Lee Myung-bak leading the list of some 1,500 dignitaries in attendance including cabinet ministers and heads of member firms & foreign diplomats.
Also present were Ministers Kang Man-soo, Lee Youn-ho, Chung Jong-hwan and a number of legislators including Reps. Lee Han-gu, Lee Byung-suk, Jung Jang-seon, Jang Kwang-keun.
President Lee in his New Year congratulatory speech said what the country needed most is industrial investment to get the economy going and to recover from the slump. He said he heard that businesses have enough cash and he would like to tell them to make investments, especially in green industrial projects, which the government has been pushing.
The president said the government launched the National Competitive Power Strengthening Committee to deregulate various rules in the way of doing business in the country and many of the new laws designed to ease regulations on business are up for parliamentary approval, which are expected to help firms do business easier.
The president also said the current crisis will improve management-labor relations substantially so that the country will be a very good target for business investment and the government will continue to make efforts to improve the business environment in Korea.
He said he would like to tell foreign business leaders present at the ceremony to continue make a lot of investments in Korea, although this year will be a tough one for business. Any complaints can be presented to the committee or foreign business leaders are welcome to join the committee.
He said, "We should have courage and hope and be united in one mind to combat and overcome difficulties."
Chairman Sohn Kyung-shik of the Korea Chamber of Commerce and Industry (KCCI) said he is optimistic that positive signs that the economy is ticking again are likely to appear in the second half, stressing that neither overly optimistic nor overly pessimistic views on the economy are warranted now. Many U.S. economists feel that U.S. housing prices will recover around the end of the year.
The chairman of the powerful business organization said as night deepens, dawn is not too far behind, which indicates that we ought to prepare for the time when the economy is back on track.
Sohn said, however, the prospects for facility investment this year are not so bright as everyone knows businesses can only invest when business prospects are good. In particular, he noted that facility investment would not be as good as those in the construction area as the government will invest or provide funding support to various infrastructure projects this year to buoy the economy. "At the same time, we ought to work hard to attract foreign investments, which constitutes a large portion of investment every year in the country," Sohn said.
Chairman Sohn, who is also chairman of CJ Group, said he is very hopeful that President Lee will be able to get the country out of the crisis we are in right now, as he has been at it since the end of last year.
"We businessmen should also work with the government to get the economy back to normal. We can fight off the economic slump if the private sector and the government, along with the support of the people, work together to shed the current economic woes," Sohn said.
The KCCI head said a survey of over 1,000 employees of firms around the country found that many of them (78.3 percent) have high loyalty to their companies since the economic crisis began in the fourth quarter of 2007. Sohn said the Korean people unite together firmly during crises as seen during the foreign exchange crisis in 1998. Many people donated money or even jewelry to help the country to secure foreign exchange and stay healthy financially.
Regarding the extent of efforts by the government to deregulate the economy, Sohn said the KCCI has been collecting the opinions of its member firms around the country through the official and private sector regulatory reform promotion team, which the KCCI set up.
Many of the KCCI recommendations on regulatory reform have been taken up by the government and are being submitted for parliamentary approval, including deregulation in the construction of plants in the Seoul area, the restrictions on capital investment in affiliate companies, the restrictions on the establishment of industrial complexes and environmental regulations, to name a few. He expects substantial deregulation of various laws and regulations governing business activities to be made this year.
Sohn also called on the government to expand investment in social overhead capital projects in order to create jobs since many highways and railroads require repairs and upgrades.
The government will invest some 14 trillion won in the project to clear the four large rivers in the country, which most of all is aimed at creating jobs and protecting the environment, in addition to spurring the local economies.
The chairman said the KCCI will focus on a number of key areas this year, including the creation of environmentally-friendly business activities. It will also expand its help to member firms to step up overseas operations in the age of internationalization through tie-ups with chambers of commerce in strategic countries, sponsor international business events and dispatch sales missions abroad. Last year, the KCCI sent some 10 sales missions abroad and sponsored 72 business seminars, and those numbers, including those for international business events, will be increased this year, he said.
On reform and initiative, the KCCI chairman said reform and creativity have become key words in the business community unlike in the past when diligence and sincerity were emphasized in office corridors. He said while going through the foreign exchange crisis in 1998, business leaders found that sincerity and diligence alone can't do the job of overcoming the crisis, they needed creativity and reform to overcome it.
"To succeed in business these days, you have to cut costs and reform ineffective structures in order to provide high-quality products and high value-added services," Sohn said. nw

President Lee Myung-bak, 2nd R, and Chairman Sohn Kyung-shik, 2nd L, make toasts for New Year at New Year? reception held at Korea Chamber of Commerce and Industry Jan. 5. Minister Lee Youn-ho, 1st R, and Chairman S.R. Cho of the Federation of Korean Industries, 1st L, join them in wishing for bright New Year. President Lee Myung-bak, 3rd R, joins dignitaries to clap hands at the KCCI New Year reception to wish good luck in the New Year.

President Lee Myung-bak delivers his speech at the KCCI? New Year reception.

Chairman Sohn Kyung-shik of the Korea Chamber of Commerce and Industry (KCCI)

Gov. Kim Moon-soo, 2nd L, Chairman Lim Do-sook, 3rd L, and Chairman Lee Hee-beom of Korea International Trade Association, right, and President-Publisher Elizabeth M. Oh, left, are pictured together at the KCCI New Year reception.