16 major company executives issue emergency statement

The top executives of 16 major companies, including Samsung, SK, Hyundai Motor, LG, and others, issued an urgent joint statement on Thursday, warning, “If the current difficulties persist, the Korean economy could easily fall into a quagmire from which it will be difficult to escape.” This marks the first time in nine years that the top executives of major companies have come together to issue such a statement, the last being in July 2015 during the MERS (Middle East Respiratory Syndrome) epidemic, which caused a slump in domestic demand.

The executives described the current state of the Korean economy as a crisis. Weak growth drivers have made it difficult to achieve a 2 percent economic growth rate. Domestic demand continues to struggle with structural stagnation due to household debt, and even exports, which have traditionally been resilient, are now facing uncertainties in the trade environment following the inauguration of Donald Trump’s second administration in the United States. The business environment is worsening as exchange rates rise and corporate debt soars. Additionally, investors are withdrawing from the Korean market due to the perceived low growth potential of Korean companies.

They emphasized the need for the government, the National Assembly, the public, and businesses to work together to set the Korean economy on a path to recovery. They urged the government and the National Assembly to prioritize economic revitalization bills and budgets over regulatory legislation. In particular, they expressed concern that the proposed revisions to the Commercial Act, which would expand the duty of loyalty for directors, could severely impact businesses already grappling with increased uncertainty. “The proliferation of lawsuits and attacks from overseas speculative capital will hinder the board of directors from operating effectively and discovering new growth engines, ultimately leading to a decline in corporate competitiveness,” the executives warned.

They also called for bold regulatory reforms to revitalize the economy, emphasizing that Korea must not miss the golden opportunity to support high-tech industries while other countries are actively doing so. In particular, they urged the government to spare no effort in supporting sectors such as artificial intelligence (AI), semiconductors, secondary batteries, mobility, biotechnology, energy, and industrial materials. Businesses, in turn, pledged to take the lead in driving change, striving to uncover new business opportunities and create jobs.

Despite their urgent pleas, the government and politicians continue to turn a deaf ear. The International Monetary Fund (IMF) has warned that Korea's growth rate could fall into the low 1 percent range next year, calling for “strong economic policies,” yet there is no decisive leadership to reverse the slump. The government is busy congratulating itself, claiming that “the crisis or unstable situation has passed,” while politicians remain focused on enacting business-stifling legislation. The solution to low growth lies in revitalizing the economy by fostering a business-friendly environment. We can no longer ignore the appeals of businesses, which have been at the forefront of efforts to overcome the crisis.