edaily strategy forum

Program on June 13

1020 Anniversary Special Program

• Keynote Speech

  From G20 to G2 to G0: What the Next Decade Holds

  Even just 10 years ago, the international community was maintaining order to a reasonable degree, with the "G20" system firmly established. Now, ten years having passed since, the world is a very different place. Based on the formidable domestic market it has built by taking advantage of the world’s largest population, China, having outstripped European countries and Japan, has reorganized the global economic order into a G2 system where it stands shoulder to shoulder with the U.S. The recent protectionist trend that the Trump administration of the United States kicked off under the banner of "America First" has intensified trade disputes between America and China, signaling yet another change on the global economy map.
  
  The United States, which took upon itself the role of the world's policeman and has been leading the world’s economy and politics, was unable to go so far as to control China's rapid growth. The influence of the U.S., which has been exerted in a self-righteous manner since the beginning of the Trump administration, is not what it used to be. The same is true of China. Despite being on equal footing with the U.S. with the global economic market under its dominance, China is not enough to replace the United States when it comes to politics and military affairs. For this reason, some forecast that the international community will soon transform into a leaderless G0 system.
  
  As a result, South Korea, heavily influenced by both the United States and China, is going through a lot of difficulties. As its export-oriented economic structure needs to be maintained for a while, South Korea has no choice but to pay close attention to changes arising on the soon-to-be-redrawn global economic map. The wave of change that has been raging tumultuously over the last decade may even get accelerated further. Let's find out what preparations South Korea needs to make and what strategy it should employ to usher in a better decade.
• Session 3

  A New Cold War at the Crossroad & Corporate Strategies

  We have seen a holy war between Saudi Arabia and Iran, and the far-right movements that have hit Europe, and the protectionism headed by the United States. This complex state of affairs in the world can be collectively referred to as ‘the new Cold War.’ While the Cold War, sustained by two polar opposites of the U.S. and the Soviet Union, was an era of political confrontation, the new Cold War is unfolding in a much more complex way, involving ethnicity, religion, economy, and so on.
  
  One consequence of the new Cold War is the trade war between the United States and China triggered by the strengthening of protectionism, and by watching it, South Korean companies are growing increasingly worrisome. Because the U.S. and China are South Korea’s major trading partners which account for one-third of Korea's exports. This trade war, in particular, is construed as the U.S.’s strategic action to curb China's rapid growth. It has been pointed out that South Korea’s traditional management strategy of walking a tightrope between the United States and China is no longer effective. This is because the two countries are expected to pressure South Korean into picking one side between them. However, as the game of strength between the two has already expanded into a battle for hegemony, there are also some voices advocating that South Korea must take the side of either the United States and China. The reason being that there is no longer the ideal compromise plan of “The United States for security, China for economy.”
  
  What would be the best choice for South Korean companies? Would it be the United States, the largest consumer market, or China, the largest export market? Or could it be Southeast Asia, which is getting a lot of attention from South Korea thanks to the country’s New Southern Policy? We will take some take to contemplate ways to survive in the desperate circumstance of the new Cold War.
• Forum in Forum

  Prepare for a New Round

  Last year, South Korea joined the so-called 3050 club, a group of countries with a population larger than $50 million and income more than $30,000, the 7th nation in the world to do so. Foreign tourists that visited the country reached a highest-ever 3.03 million in the first quarter. In the eyes of foreigners, it is a wonder itself to witness South Korea's marvelous economic growth and rapid democratization in just a few decades. This is not an achievement that is duplicated in other countries that suffered colonial rules and later found independence in the 20th century.
  
  But after a brief moment of joy in joining the 3050 club, South Korea now stands at a crossroads that leads to the status of a truly advanced nation. External conditions are cloudy at best as America and China's fight over hegemony and the stalemate in North-South relations surround us. Visiting foreigners are wowed by the dynamic and hardworking nature of the Korean people, but they also agree that something else is needed for the future. From economic growth to democratization and Hallyu, here's a look into South Korean society and its culture at large through the eyes of foreign media. Members of the foreign press from Japan, China, the US, and Europe speak frankly about what South Korea is as a nation, and what changes are needed to recreate the Miracle on the Han River for a second time.
• Session 4

  Inter-Korean Economic Cooperation, Between Dreams and Reality

  For South Korean companies, entering the North Korean market has always been a long, tough journey. It is because the United Nations’ economic sanctions against North Korea are still strong, as well as because companies are blatantly exposed to political and diplomatic shocks due to the nature of the North Korean circumstances. However, interest in investing in North Korea has yet to subside. Stocks related to economic cooperation between South Korea and North Korea have been fluctuating whenever the communication efforts between the countries, and between North Korea and the United States being made, and South Korean companies form task forces in preparation for their forays into the North Korean market. Some SMEs have established joint ventures with Russian and Chinese companies to pursue their North Korean projects.
  
  Rose-colored analysis results are coming in spades that the moment a new market called North Korea opens its doors, it will turn out to be a blue ocean with a yield of 1000%. And it is not that only companies engaged in the field of infrastructure, including construction, telecommunications, and logistics, can enjoy the opportunity to enter the North Korean market. It is expected that the overall investment environment in North Korea will improve, and with that, related financial products will also become high in demand. New opportunities to make money by investing in real estate in North Korea and border areas will also arise. There is also an expectation that once the geopolitical risks are resolved, with a decreased credit default risk for South Korea, financing for North Korean ventures will become easier.
  
  So then, have South Korean companies all fully readied themselves, so that they can enter the North Korean market as soon as the sanctions are lifted? There is also no small number of South Korea companies that are reluctant to enter the North Korean market regardless of the existence of sanctions, due to the possibility of the relationship between the two Koreas going sour again. There is also concern that South Korean companies may not survive in the North Korean market due to their unfamiliarity with North Korea’s systems and society. It is possible that the North Korean market will become a playground for Russian, Chinese and Vietnamese companies only. We are going to tell you everything about investing in the new market, North Korea.
• Session 5

  Redrawing the Korean Peninsula's Economic Map

  The global economic order, where free trade has been the mainstream, is being destabilized amid the strengthening of protectionism that began with the inauguration of US President Donald Trump. While most countries are refusing protectionism, the stance of the American economic powerhouse remains unchanged.
  
  South Korea in particular is being swayed by the trade war between the United States and China, which has been disrupting global market leaders in recent years. This is because the global economy has been wobbling unexpectedly since the US-China trade war began. Even if the US-China trade war came to an end, it might bring about a crisis in the Korean economy for reasons such as the relocation of production bases in the two countries and an increase in tariff rates.
  
  It is also urgent for South Korea to improve relations with Japan, a country that is so close yet so far. South Korea is concerned that the deteriorated diplomatic relations between the two countries, largely attributable to the comfort women issue, might rub off onto the economic domain as well. For South Korea, which has an export-oriented economic structure, dealing with changes in its external environment is its never-ending focus of attention. In these circumstances, where the global economic landscape is being reorganized, we are going to redraw the map for South Korea's economic development.