SEOGWIPO, Jeju Island -- While upholding the government’s reform drive, the head of the largest group representing the interests of small and large businesses here called for new policy work to spur South Korea’s growth, stressing that the nation’s economy is on a downward spiral.

“The handlebar is set for the right direction, but without growth pedaling, we can never go forward,” said Park Yong-maan, chairman of the Korea Chamber of Commerce and Industry, at the annual Jeju Forum, likening the nation’s economy to riding a bike. The 43rd KCCI forum kicked off its four-day run Wednesday at Hotel Shilla, bringing together some 600 businessmen and experts to discuss key issues faced by Asia’s fourth-largest economy.

“If policies to fuel growth are developed and (help businesses) create new added value, that will create fresh investment for the future and strengthen (the nation’s) social safety net,” Park said.

The nation faces a wall of regulations and concentration of wealth, and the manufacturing industry has reached its limit of creating new jobs, he said. Business competitiveness of small and medium-sized companies is also low, while the nation’s fertility rate continues to fall.

“Without fundamental treatment, macroeconomic indices will keep us alarmed, (expose us) to face exhaustive controversies, and the vicious circle of the economy heading downward will continue.”
 

For the future of industries, Park urged the eradication of unnecessary regulations that have hindered Korean Inc. from going global.

The chairman also suggested a thorough change in corporate culture from the current decision-making system to a leadership model, adding that companies should change their mindset first.

Park’s comments came amid a transition to shorter work hours -- which kicked off this month -- and escalating controversy over the government‘s drive to raise the minimum wage.

Businesses have been seeking ways to create jobs required by shorter work hours. Companies have been raising concerns of rising economic burden, citing the slowing economy.

This year’s forum featured Commerce Minister Paik Un-gyu, Jeju Gov. Won Hee-ryong and Daan Roosegaarde, a Dutch designer, as speakers.

The list of speakers also included politician-turned-writer Yoo Si-min and Ken Segall, former creative director of Apple.

On Wednesday, Roosegaarde stressed the importance of imagination and vision in the making of the future of cities.

He is the founder of Studio Roosegaarde, a team of designers developing urban environment projects by merging technology and art. The Dutch designer said he is working with the Jeju government for a public project to be completed within two years.

By Cho Chung-un (christory@heraldcorp.com)