Korea Fair Trade Commission Chairman Kim Sang-jo stressed on May 5 that the South Korean government’s policy stance regarding income-led growth and chaebol reform remains basically unchanged.
“The government’s economic policy can be broadly divided into income-led growth, fair competition and innovative growth and this is being maintained as it is with only the focus being shifted in accordance with economic circumstances,” he explained, adding, “President Moon Jae-in’s eagerness for reform has never weakened for the past two years.” He also said that the recent frequent meetings between the president and Samsung Electronics vice chairman Lee Jae-yong were because the meetings were necessary for innovative growth and do not mean any weakening of the policy stance.
In response to comments that the government’s policy for innovative growth is still revolving around large corporations, the chairman said that large corporations cannot but take a pivotal role in new industries such as system-on-chip and hydrogen and electric vehicle. “The policy can bear fruit only when smaller companies and startups work together with them to build a prosperous ecosystem,” he went on to say.
“South Korean companies have overcome crises by quick and bold decision making led by corporate owners, but the time has changed and now they have to be more transparent in making decisions and those protecting the rights of shareholders have to be allowed into the process,” he remarked with regard to chaebol reform, adding that the government is far from being hostile to enterprises unlike some people claim.