Bolstering Cooperation in Business

President Lee calls for joint moves by Korea and ASEAN members to stop spread of trade protectionism and increase efforts for mutual prosperity

The Korea-ASEAN CEO Summit from May 31-June 1 at ICC Jeju provided an opportunity for the Korean business leaders and CEOs of ASEAN member countries and other business leaders to meet with their 700 Korean counterparts and talk business.
Among the dignitaries at the rare international event were President Lee Myung-bak, Thai Prime Minister Abhisit Vejjajiva, Vietnamese Prime Minister Nguyen Tan Dung and Cambodian Prime Minister Hun Sen. President Lee, in his keynote speech, said he would like to welcome ASEAN heads of state and business leaders to Jeju, the island of green and peace. He said he too was a businessman and worked in many of the ASEAN countries when he was young. He said, “I still have many friends in those countries among business and political leaders, which is why I am so excited to meet you and feel so comfortable to be with you. I hope sincerely that you will find the time to share opinions on finding ways for common prosperity between ASEAN and Korea.”
Lee went on to say, “Asia has been emerging as a new growth sphere in the world with its great potential. But the global economic crisis has also impacted the Asian economy. The global crisis needs to be tackled with a global countermeasure, where Korea and ASEAN, with their great potentials and possibilities for resurgence, need to cooperate jointly. This is where CEOs can show what they can do to bring Korea and ASEAN closer by expanding their business deals with their counterparts in ASEAN member countries. They can create jobs and produce goods and they are the root force that can turn crises into opportunities with a creative and challenging entrepreneurial spirit.
“The CEO Summit is meaningful and significant in this respect as you business leaders are a key to fomenting trust and cooperation between Korea and ASEAN as well as heroes to explore a new future for the two partners,” the president said. He added that he hoped that this occasion on Jeju would be the place for sharing wisdom to overcome the crisis and finding new development models. “We also have to find means to overcome trade protectionism spreading around the world in the wake of the global economic crisis, as it will prolong the economic crisis.” Lee said he called for a stop to protectionism at the first and second G-20 meetings held in Washington and London, and if every country agrees to do away with protectionism, the economic crisis would come to an end very soon. Cambodian Prime Minister Hun Sen, in his keynote speech, said the combination of financial crisis and shrinking demands in the advanced economies is having negative impacts on the ASEAN and Korean economies, which could cause significant impacts on growth.
The prime minister said the Cambodian government has been implementing serious reforms in all sectors, including public financial management reform, financial sector development, private sector development and government reform, including land management reform, administrative reform, and legal and judicial reforms aimed at improving the business and investment climate through trade facilitation, promotion of the private sector's participation in physical infrastructure and the development of small and medium enterprises.
The top Cambodian government official said Cambodia is a country with great and unexploited potential. The potential in agriculture, both agro-industry and agro-processing, is tremendous with its fertile land and favorable climate. At the same time, Cambodia is still in need of infrastructure improvements such as transport systems, telecommunications, electricity and irrigation systems. He said the Cambodian government continues to place a high priority on improving productivity and diversifying the agriculture sector as well as promoting agro-businesses. The government continues to enhance partnerships between smallholder farmers and large-scale farms and agricultural enterprises, especially for cashew, sugar cane and rubber plantations, among others.
Chairman Sohn Kyung-shik of the Korea Chamber of Commerce and Industry, the official host of the event, said it was his pleasure to welcome them to the ASEAN-Korea CEO Summit on Jeju, blessed with natural beauty and designated as a Natural World Heritage Site by UNESCO.
The KCCI chairman went on to say that he would like to extend his sincere gratitude to all the business leaders from ASEAN member nations and Korea participating in the meeting.
Sohn said the year 2009 marks the 20th anniversary of the establishment of a dialogue relationship between the Republic of Korea and ASEAN. This makes the Korea-ASEAN CEO Summit all the more meaningful.
ASEAN and Korea have gone on to develop mutually beneficial relations in various areas including diplomacy and culture, and have already achieved considerable growth in economic exchanges. For Korea, ASEAN has become its third largest trading partner and second largest investment destination worldwide. Now, he said, on the platform provided by their solid partnership built up over the last 20 years, Korea and ASEAN should ready themselves for a further bold advance for the 20 years to come. “I hope that this ASEAN-Korea CEO Summit will prove to be the first step in this promising journey toward their future together.” This ASEAN-Korea CEO Summit has the theme of “Change, Challenge and Collaboration for Asia's Prosperity.” It is his sincere wish that this Summit will help them identify new challenges and opportunities in this fast-changing global economic environment and work out ways to promote economic collaboration for mutual prosperity for both Korean and ASEAN business communities.
The purpose of the Summit was to create a venue for cooperation between business leaders from Korea and ASEAN countries and make the most of the ASEAN-Korea Summit, which marked the 20th anniversary of the dialogue relationship between Korea and ASEAN, which was the first such event hosted by Korea, along with the CEO Summit.
The CEO Summit consisted of four sessions. In Session 1, Sec.-Gen. Surin Pitsuwan of ASEAN delivered a presentation titled “Global Economic Outlook and Asia's role.” Minister of Trade Mari Pangestu of Indonesia was among the panelists.
In Session 2, Muhammad Lutfi, chairman of the Indonesian Investment Coordinating Board, addressed the topic “Promotion of Economic and Social Development through Trade and Investment.” Chairman Miguel B. Varela of the Philippine Chamber of Commerce and Industry attended the session.
In Session 3, Chaly Mah Chee Kheong, CEO of Deloitte Asia-Pacific, spoke on the need for a “Corporate Growth Strategy Amidst a Changing Environment.” Arim Jira, chairman of the ASEAN Business Advisory Council, was among the panelists. In Session 4, Achim Steiner, Executive Director of the U.N. Environment Program, discussed “Green Growth: Challenges for Governments and Businesses.” Elmer C. Hernandez, undersecretary of the Department of Trade and Industry of the Philippines, was among the panelists. On the sidelines, bilateral meetings, investment environment briefing sessions and Project Meetings were held. These will help businesspeople from Korea and its ASEAN partners to seek various avenues of economic cooperation and exchange. The bilateral meetings were held May 31 and June 1 at ICC Jeju. National leaders from ASEAN countries and several Korean businesspeople attended the meeting. The meeting gave Korean companies a valuable chance to interact and network with the distinguished ASEAN leaders and establish contacts within the respective governments. The ability to consult directly with national leaders from ASEAN countries is seen as highly conducive to success for Korean businesses.
The Investment Environment Briefing Session was held June 1 at the ICC Jeju. A KOTRA representative talked about the Korean investment environment and relevant systems, and the Jeju provincial government unveiled its unique business environment.
The FTA in investment between Korea and ASEAN has sparked intense interest in Korea on the part of ASEAN businesses. Korea capitalized on this interest with a presentation on its investment environment for businesses from ASEAN countries. The goal was to prompt increased bilateral investment.
On June 2, an ASEAN Project Meeting took place in Seoul. At the meeting, six ASEAN companies introduced 11 promising projects worth a total of $6.29 billion to 200 Korean companies. Individual business meetings also took place. The projects include a new and renewable energy project in the Philippines, a port construction project in Vietnam and a ferry project in Indonesia. These projects will start within the next few years, and the project meetings will help Korean companies win new projects. Over the past 20 years, the Korean-ASEAN relationship has matured significantly. With the Commemorative Summit and the CEO Summit, Korea hopes the Lee government's New Asia Initiative will bear fruit and that the new growth engines developed in the era of green growth continue to propel the bilateral relationship forward.
Korea-ASEAN trade volume stood at $8.2 billion in 1989 and has since grown to $90.2 billion in 2008. Korean investment amounted to $5.9 billion in 2008, compared to $200 million in 1989. nw

President Lee Myung-bak delivers a speech at the Korea-ASEAN CEO Summit on June 2 held on Jeju Island.

Chairman Sohn Kyung-shik of Korea Chamber of Commerce and Industry delivers his speech on the podium at the Korea-ASEAN CEO Summit