Survey: More Than Half of CEOs Say Being a Balancing Force in Northeast Asia Is Not Proper

It was reported that regarding the concept of Korea being a “balancing force in the northeast Asian region,” a large number of CEOs of local corporations and financial institutions expressed negative opinions on the plan since they felt it is not appropriate and feasible, and that it will undermine the ROK-U.S. alliance, given South Korea’s current economic and military capability.

According to a survey regarding President Roh Moo-hyun’s remarks on Korea becoming a balancing force in the northeast Asian region and its effect on future ROK-U.S. relations that was conducted by the Korea CEO Forum on April 20, 60 CEOs of industrial and financial companies responded in the above-mentioned manner.

According to the results of the survey, the proportion of respondents that, considering South Korea’s economic and military capability, felt that Korea being a “balancing force in the northeast Asian region was not proper and realizable,” reached 58.3 percent.

A total of 36.7 percent of respondents responded that even though the idea was right in terms of long-term perspective, it was not timely, while a mere 1.7 percent of respondents said that it was an appropriate suggestion.

Concerning the question over whether being a balancing force in the northeast Asian region’ and the ROK-U.S. alliance will be able to harmoniously coexist, 75 percent of respondents said that it would be difficult for both to coexist, and that it would inevitably alter the ROK-U.S. alliance. A total of 73.3 percent of respondents said, regarding the policy’s effect on the future relationship between South Korea and U.S., that their alliance would be undermined.

Moreover, regarding the question of what affect the North Korean nuclear issue and changes in ROK-U.S. alliance will bring to business, the answer that “with the North Korean nuclear issue, changes in ROK-U.S. relations will elevate uncertainty,” stood at 43.3 percent.

Also, 20 percent of those surveyed answered that “the aggravated North Korean nuclear issue and changes in the cooperation system between South Korea and U.S. have intimidated corporations.” On the other hand, 35 percent of respondents said that even if such factors increased uncertainty, it was not high enough for them to consider adjusting management strategies.

The Korea CEO Forum, established in 2001, consists of about 170 members, including CEOs of corporations and financial institutions, and professors. Kim Seung-yu, chairman of the board of directors of Hana Bank, Yu Sang-ok, chairman of Coreana, and Cho Dong-sung, a business administration professor at Seoul National University, have served as a joint chairmen of the forum in the past.

Young-Hae Choi yhchoi65@donga.com