Raise public trust in conglomerates

Conglomerates are the cornerstones of the Korean economy, and have helped the country become the world’s 15th-largest economy and attain annual trade worth 1 trillion U.S. dollars. Other countries envy the remarkable achievements of Korean business groups, but the Korean public has a different opinion of its large corporations. As seen in the periods of this year`s general and presidential elections, politicians exploited the idea of disciplining conglomerates as a means to attract voters while evading their responsibilities for alleviating economic difficulties. Despite this, more than a few people have shown interest in economic democratization.

Samsung, Hyundai, LG and SK comprise the top four conglomerates of Korea and have greatly contributed to the economy`s wealth accumulation through a pioneering spirit in the global market. Thanks to such accomplishments, workers have secured jobs while smaller companies can advance into the market. As time goes by, however, the bond between conglomerates and Korean society has loosened. Due to globalization and the information of the times, the harvest yielded by large companies abroad has proven less effective as before in satisfying the lower-income class in Korea. Certain conglomerates and business figures have abused their power and exploited the weak to enrich themselves, going as far as breaking the law.

President-elect Park Geun-hye pledged to change Korea’s conglomerate-centered economy into one in which all economic players, including consumers, small business owners and small and medium companies, can develop together. Fair economic opportunities and compensation and a more transparent market order are likely to serve as important economic principles in the coming months and years. The responsibility of the next administration, legislature and judiciary to watch conglomerates’ activities has grown heavier. Korean business groups will have to catch up with the latest trends by reflecting on their past and establishing a new paradigm to bridge the gap between themselves and society.

If the Korean people continue to have no respect or affection for conglomerates and business figures, who form the axis of the Korean economy, the country`s future is bleak. If companies lose the public trust, the economy will contract. Experts say the decrease in capital investment is hindering economic growth, something which was triggered by the uncertain stance of politicians on conglomerates before and after the presidential election coupled with the economic slowdown. Business groups must earn the people’s trust by taking the initiative in bold investment and job creation in times of difficulty.

Global consulting companies say jobs will be a top political agenda in the coming years, and so companies are advised to consider job creation from a strategic perspective. The U.S. Federal Reserve must have noticed this global trend because of its recent announcement of integrating its monetary policies with unemployment rates. In this era of promoting the people`s livelihood, companies that will emerge triumphant are the ones that take the lead in finding new business models that create jobs and make bold investment into facilities and human resources before being forced to by politicians or society.