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The cooperation between the Government and the private sector is fueling the engine for the construction of economic power starts up.
The tentatively named “Global Industry Cooperative Association (GICA)” was officially launched with about 120 promoters on hand in the Memorial Hall of the National Assembly on January 20, 2014.
The association’s goal is to find a way for the co-existencesof domestic companies in making inroads into overseas markets and to secure to foothold to emerge as an economic power. This is done with the hopes of capitalizing in what former Goldman Sachs economist Jim O'Neill popularized as BRICs,a group of emerging-market economies including Brazil, Russia, India, and China,and MINITswhich includes Mexico, Indonesia, Nigeria and Turkey. These groups are new potential investment destination,the so called ‘frontier markets’.
Citing former Goldman Sachs economist Jim O'Neill’s assertionin the potential of these markets, Senior Vice Chairman of GICA Kim Hak-chul, CEO of DongNam EnS, strongly affirmed in his proposal that in an age of unbridled global competition, attentions should be paid to the new emerging economies.
According to Senior Vice Chairman Kim, emerging economies boast rich populations, especially in the younger demographics,and abundant resources. They alsohave significant growth potential such as demographic structures favorable to economic growth and geographical advantages in global trade. Senior Vice Chairman Kim went on to saythat a lot of countries,including ASEAN countries and Central Asian nations,will be the foremost international players that the domestic companies competewithin the global competition.
Unfortunately, however, only a small number of the mid-size established enterprises and small and medium-size firms which conduct businesses in those emerging economies have paid off.
Domestic political instability and the threat of nuclear conflict from North Korea are degrading the global competitiveness of the Korean industries, he added.
Senior Vice Chairman Kim called for on not only domestic conglomerates but also mid-size established enterprises and small and medium-size firms to join forces to secure the foothold for overseas expansion.
Lawmaker Lee In-je of the ruling Saenuri Party gave a special lecture on the subject of “Economics for Reunification of Korea”.
During the lecture, lawmaker Lee said that reunification of Korea should take priority to overcome all difficulties facing Korea. He further explained that according to the Goldman Sachs Global Economics Paper from March 2007, showing changes in GNP per capita in many countries in 2050, the United States ranks first with an amount little over USD 90,000 followed by the Republic of Korea with USD 90,000.
Lawmaker Lee also commented inthe same publication in September 2009, that should the Korean Peninsula be reunified, gross domestic product of Korea would surpass that of France, Germany and, maybe, Japan in 30 to 40 years, which would make Korea the third largest economy.
Lawmaker Lee expressed his view that reunification is closely related to Korea becomingone of the world’s major economic powers.
The reunification of Korea requires integration in almost all sectors, which will create more opportunities nationwide leading to economic growth and an increase of national income, he said.
Korea now stands on the threshold ofbecoming anadvanced country facing an economic growth limit due to the suffocated markets. Moreover, lawmaker Lee points out that as the growth intheglobal business sector, if any, is not well reflected in the domestic market, the unemployment rate in Korea will be on the rise.
In a situation where there is a failurerid oftheuneasy feeling concerning the widening gap between the rich and the poor as well as a rapidly aging population, the reunification of Korea will be the only way to overcome these challenges.
Lawmaker Lee forecasts that reunification meanstheintegration of large markets, if private companies of South Korea invest in the construction of public infrastructures of the North withina vacuum, will heighten the industrial competitiveness of our companies.
Moreover, huge agricultural and energy resources,alabor-intensive industry,and a cutting-edge industry which has, up until now,depended on overseas markets, abundant labor forces,cheap land of North Korea,and its geographical advantage connecting directly to the continent will be attractive to domestic companies and other global companies.
The GICA plans to push forward with various projects to pave the way for expansion in emerging markets of large and mid-size established enterprises and small and medium-size firms, establish cooperative relations between the government and the private sector for the purpose of preoccupying large-scale projectsin emerging countries, establish the system supporting the domestic companies in receiving orders from foreign countries, create the market,and secure new growth engines.
Followings are the list of major members of GICA.
△ Honorary President= Ahn Sang-soo, former chairman of the Grand National Party△ Standing Advisor= Lee In-je, Lawmaker of the ruling Saenuri Party △ Chairman= Lee Nam-ki, former Chairman of Fair Trade Commission △ Senior Vice Chairman= Kim Hak-chul, CEO of DongNam EnS△ Vice Chairman= Yoo Sung Young, CEO of Daekwang Lighteck Co., Ltd., Lim Jong-soo, CEO of SD Construction Co., Ltd., Lee Sang-dong, CEO of Veterans Economic Daily, Cheon Dong-hui, Film director (Professor of MyongJi University), Kwon Hyuck-eun, CEO of Vision Club, Hwang Myung-hui, CEO of MS Tech Co., Ltd. △ Standing Head= Choi Seok-man, Professor of Sejong University
* Photo: From the left- Choi Seok-man, Professor of Sejong University, Yoo Chan-jong, Chief Director of MG Gyonam-Dong Community Credit Cooperative, Cheon Dong-hui, Film director and Professor of Kyonggi University, Lee Sang-dong, CEO of Veterans Economic Daily, Kang Chang-soo, CEO of Powel Corporation, Lee Nam-ki, Representative of Promoters, Lawmaker Lee In-je, Kwon Hyuck-eun, CEO of Vision Club, Kim Hak-chul, CEO of DongNam EnS,Kang Min-kyu, Chairman of Daekwang Lighteck Co., Ltd.