Interview with ICCI Chairman
Lee Kang-shin, chairman of the Incheon Chamber of Commerce and Industry, has been making every effort to boost the economy and business of the Incheon Metropolitan City by active communication and interaction with local businesses and the local community including the government. With the effectuation of the Korea-China FTA, chairman Lee leads the ICCI supports for businesses with various new projects related to trade with China, including training programs to foster experts of trade and logistics with China. Followings are some excerpts from the interview with chairman Lee.
You have been working on active and steady communication by walking around with local businesses after you took office as chairman of the Incheon Chamber of Commerce and Industry (ICCI) in March last year. Please tell us your opinions during the period.
After I became chairman of the ICCI, I spent a year working really hard and acquired a lot of valuable experiences during the period. I had meetings with local business owners and met many CEOs at both small and medium-sized enterprises (SMEs) and conglomerates. Through this, I have confirmed the fact that local businesses are the major engine for Incheon economy once again. By communicating with heads of various economic departments and organizations and political, social and cultural figures, I have heard what the local community wants to see from business owners. I will keep working on filed-centered projects and communicating with the local community in the future so that I can fulfill my obligations as a businessman and the head of the local economy.
Also, you are about to wind up the Ganghwa Industrial Complex construction project, which will have a great effect on the regional economic stimulation.
The ICCI completed the development of 459,566.1 square meters, the first stage of the Ganghwa Industrial Complex construction project, on December 31, 2015. When the water supply facilities are completed in 2016 along with sewage treatment facilities in 2017 and main entry roads in 2018, the Ganghwa Industrial Complex will be completed.
Currently, as the construction of a government-aided joint distribution center is to be built, many companies are seeking to move into the center and the lotting-out has just entered its final stretch. Moreover, foreign firms including those from China and local firms returning from overseas are asking how to join the complex. When taking a close look at the annual ripple effects of the Ganghwa Industrial Complex on the local economy, it is expected to create 7,554 jobs and 647.8 billion won (US$538.49 million) of economic benefits. In addition, the fiscal status of the local government expects to see a 15 percent growth in local taxes through 10.2 billion won (8.48 million) of local tax income in 2015. Based on the credibility of the Incheon Chamber of Commerce and Industry, we hope that the complex will lead the revival of the manufacturing industry in Incheon through successful creation and parceling out of the complex in cooperation with the local community.
The Incheon Intellectual Property Center under the ICCI has been making an effort to establish the Intellectual Property (IP) Creation Zone and create regional IP rights as its major project last year. Can you give us more details?
As part of creative economy policies, the Incheon Intellectual Property Center has joined hands with the Korean Intellectual Property Office and Incheon Metropolitan City to encourage citizens to create ideas and make the best use of them so that they can lead to strong IP rights. This is why we have constructed the IP Creation Zone in a bid to contribute to the IP centered-creative economy.
Until now, there have been no physical open spaces enough to improve the practical use of IP projects. Through the IP Creation Zone, which is operating year-round, it will serve as the IP guidance that introduces A to Z about IP to citizens of Incheon and as the outpost to promote idea generation so that ideas can lead to new business models.
Moreover, it will pursue open education with various programs, including regular and special programs about IP education, and create an IP library by building a research space with IP-related books and customized materials. We also expects that the Incheon Intellectual Property Center will lead ideas to be strong IP rights and produce various cooperative projects that can lead to the commercialization and creation of start-ups.
The ICCI is regarded as the driving force in export and trade activities of SMEs in Incheon. Please tell us more about that.
With the Korea-China FTA, which came into effect on December 20, 2015, Korea has signed free trade agreements (FTAs) with major countries and regions, which account for 73.2 percent of the global economy such as North America, the European Union (EU) and the Association of South East Asian Nations (ASEAN). However, Korean businesses have not used the FTAs properly so far. The ICCI is running the Incheon FTA Center so that Incheon can become the nation’s best FTA city by raising the utilization rate of the FTAs, strengthen the global competitiveness of local businesses, and make a breakthrough for the depressed local economy.
Even before the establishment of diplomatic ties between Korea and China, Incheon has played a key role in trade with China, and the ICCI has also an accumulated experience and expertise in the business with China. Keeping pace with the effectuation of the Korea-China FTA, the ICCI supports businesses with various new projects related to trade with China. First of all, we run training programs to foster experts of trade and logistics with China. We seek to tackle the problem of unemployment among younger people, to provide training programs for regional experts of logistics in China and job education programs and to address China expert shortage problems. We will also help create jobs and stabilize the employment in the region by fostering experts of trade and logistics with China.
Moreover, we are also planning to offer China business expert training programs in order to come up with China business strategies so that Incheon businesses can push into the Chinese market with new strategies.
In addition, the Incheon FTA Center will contribute to the expansion of China trade infrastructure in the region by operating various Korea-FTA briefing sessions and education programs and providing consulting services.
Recently, the unemployment of younger people and job mismatches are emerging as social issues. What does the ICCI do in an effort to address these problems?
Recently, companies are suffering from labor shortage, while many people are unemployed. This imbalance between supply and demand of workforce is becoming social issues. Incheon has a higher unemployment rate at 4.3 percent than the national average rate at 3.1 percent as of November 2015. However, companies are having difficulties to secure workforce.
The ICCI is making an every effort to establish the region and industry customized expert training systems, train and employ experts, and solve the imbalance of labor supply and demand through “Human Resources Development Committee,” which was established at the end of 2013.
Last, please tell us your impressions, future prospects, roles and plans as a businessman that represent Incheon.
Over the last year, there were a lot of difficulties both at home and abroad. Due to the long-term global economic depression and international economic uncertainties, the Korean economy and businesses had a tough time. The domestic investors’ confidence and consumer shrank and the depression of domestic consumption was depressed further with the worsened household debts.
The year 2016 is very important for the development of both the nation and Incheon. Business environments at home and abroad are still unfavorable and Korea is facing with a low annual growth rate at two percent. Moreover, the general election will be held in April. This is why we feel concern about the fact that non-economic factors can have effect on the Korean economy. However, we should consider the current crisis as an opportunity to challenge the creative advance, and achieve sustainable growth through continuous innovation in 2016.
The fundamental role of businessmen is to secure profits, create jobs and contribute to the development of the national economy. The most important task of businessmen now is to revive the growth momentum. Instead of blaming the global economy and cowering in a corner, it is important to restore entrepreneurship and proactively go forward. In a bid to support businesses, the ICCI is also making efforts to improve management environments and reform regulations for businesses.