[Initial Insight] "Entrepreneurs Don't Predict... Surviving Is the Goal"

The Answer Offered by Chairman Chey Tae-won to the Economic Crisis Theory

[Image source=Yonhap News]

[Asia Economy Reporter Oh Hyung-gil] "Entrepreneurs are not those who try to predict well. The goal of an entrepreneur is to be prepared and ready to survive and keep moving forward no matter the situation."

At the 45th Korea Chamber of Commerce and Industry (KCCI) Jeju Forum held on the 13th in Jeju Island, Choi Tae-won, Chairman of KCCI (and SK Group Chairman), gave an answer that clearly showed the nature of an entrepreneur when asked by a reporter about concerns over an economic downturn in the second half of the year. Let’s listen a bit more to his words. "People keep asking for predictions, but whatever happens, I take the path that allows me to survive. Of course, it will be difficult if the hole deepens. But I believe this level of shock can be overcome. Among many companies worldwide, Korean companies are structured with a constitution that is very strong in the face of crises."

A dark shadow has been cast over the Korean economy entering the second half of the year. Amid the intense US-China conflict and the prolonged Russia-Ukraine war, inflation and supply chain crises are worsening.

Financial volatility is expanding, including the use of a ‘big step’ (a 0.50 percentage point increase in the base interest rate) to curb rapidly rising prices. The debt that surged during the low-interest period is now holding back companies and ordinary citizens, leading to a prevailing pessimism that the economy will slump in the second half.

While some view this series of trends as a ‘gray rhino’?a predictable risk?the anxiety about our economy immediately becomes a factor that lowers economic vitality. The economy is psychological. We hear cries of people forced into debt and cutting consumption due to high prices. Voices warning of stagflation, where prices rise amid economic stagnation, are heard everywhere.

In reality, companies are delaying or reconsidering new investments as uncertainty about existing businesses rapidly increases and financial burdens rise due to interest rate hikes. Facing the era-defining challenge of carbon neutrality, it is uncertain whether the promised 1,000 trillion won investment by the top 10 conglomerates to secure new growth engines will proceed as planned.

At this critical moment that could mark the start of a global economic crisis, Chairman Choi’s remarks attract attention. Rather than worrying about whether the current situation is a crisis or not, he focused on the attitude and role of entrepreneurs preparing to fight against the crisis.

This aligns with the entrepreneurial spirit defined by Peter Drucker, known as the father of modern management. Drucker stated that entrepreneurship is "the spirit of adventure and challenge to commercialize opportunities taken at risk," and argued that "only when continuous innovation is pursued can a society progress to the ‘next society.’"

For entrepreneurs to continuously challenge themselves and engage in free management activities, creating a conducive environment is essential above all. To realize an entrepreneurial society, all members of society must promote each other to ensure everyone is guaranteed opportunities for innovation. Companies must continuously develop advanced technologies, and the government must create an economic environment where companies can develop such technologies. We must move from a managed economy focused on control to an entrepreneurial economy that respects autonomy.

Coincidentally, the new government has also set a goal of a dynamic economy centered on the private sector. It pledged to reform regulations that constrain companies, resolve legal uncertainties, and establish a fair market order. Just like during the past foreign exchange crisis and global financial crisis, it is time for both the public and private sectors to unite and wisely overcome the crisis once again.