Posted January. 03, 2008 04:35,
New Years messages from CEOs are something not to be taken lightly, as the executives are responsible for making their companies profitable in an environment of limitless competition. CEOs messages at the beginning of a year not only indicate their respective firms short-term directions but the messages themselves are also considered leading indicators.
In 2004, when the Japanese economy recovered from ten years of recession, the themes of New Years messages from Japanese CEOs were an early signal. The messages included "Advancement and Improvement (Toyota)"; "Devotion to Growth (Hitachi); and "Fresh Start for New Development (Matsushita)." Though well known for their circumspection, Japanese businesses, encouraged by the successful reforms of then Japanese Prime Minister Koizumi Junichiro, finally sounded positive voices.
This year, the New Years messages of major Korean CEOs can be summed up as forward-looking and aggressive management. Hyundai Automotive Group Chairman Chung Mong-koo spoke of A Leap Toward the Future," LG Group Chairman Koo Bon-moo "Number One LG," and SK Group Chairman Chey Tae-won "Faster Innovation." GS Group Chairman Huh Chang-su said, Do not be afraid to invest while Federation of Korean Industries Chairman Cho Seok-rai said, 2008 should be the first year of $40,000 per capita income.
The overall tone of the messages is quite different from those in 2003 prior to the inauguration of the Roh Moo-hyun administration. Then Federation of Korean Industries Chairman Kim Gak-jung asked the government to create a business-friendly environment, as if he feared a rough path ahead. Between then and last year, New Years messages from CEOs were imbued with a sense of crisis.
It is nice to hear enthusiastic voices from Korean CEOs after a long absence. No doubt they are aware of external economic conditions looking unfavorable this year. Nevertheless, CEO expectations are high over President-elect Lee Myung-baks promise to make a business-friendly government.
President Roh often said, What matters for the economy is business sentiment. The point is not whether one knows that, but in what direction one forges business sentiment. I wonder whether President Roh now understands this point.
Park Won-jae parkwj@donga.com