Korea Chamber of Commerce President Sohn Kyung-shik commented on the ongoing controversy over social contributions by companies on Monday, saying, It is difficult for companies to make social contributions to the extent of hurting their competitiveness.
At a press conference prior to his inauguration ceremony as the 19th KORCHAM chairman at the KORCHAM building in Seoul, Sohn said, Companies should engage in social contribution activities but not to the point of damaging their competitiveness.
Sohn commented on some views in the ruling party that corporate profits from Free Trade Agreements should be returned to society, saying, FTAs would increase corporate exports, but the earnings that come from these exports would be difficult to measure. Moreover, providing compensation for those who suffer from FTAs is not an easy issue. In short, Sohn implied disagreement with the idea.
Sohn added, Bipolarization occurs naturally during the process of economic development but is an undesirable challenge to our quest of developing into an advanced economy. Companies should make active investments to create jobs and also strengthen large company-SME cooperation, thereby playing a part to resolve bipolarization.
Sohn also said, In the run up to the local elections, local governments could pour out election promises. This would burden the national economy. I am concerned that if this happens, real estate prices will surge, and a series of utility fees will rise.