[The Editors' Verdict] Expo and Corporate Management: What Truly Matters

The invisible costs are high because the heads of the companies have to cover things personally.

This is a conversation with the head of a major Korean conglomerate’s branch office working overseas. What does it mean that the heads of large corporations, who seem to focus on making final decisions with the support of numerous experts, have to cover things personally? The answer is clear. It is the campaign to host the 2030 Busan World Expo. Since it is a matter of making a personal impression, they inevitably have to be on the ground. We were able to learn about the situation of the chairpersons of major groups who are at the forefront of making the Expo a reality.

He called this the destiny of Korean companies. Our companies have never ignored the destiny called 'the call of the nation.' The 1988 Seoul Olympics and the 2018 Pyeongchang Winter Olympics were made possible through the dedication of Chung Ju-yung, chairman of Hyundai Group, Lee Kun-hee, chairman of Samsung Group, and Cho Yang-ho, chairman of Hanjin Group. The Seoul Olympics, which succeeded on the first attempt, was a relatively easier case. Many remember figure skater Kim Yuna’s impressive presentation during the third attempt to host the Pyeongchang Olympics. However, behind that was the effort of businesspeople who devoted over a decade. Businesspeople traveled every corner of the world, where government influence was hard to reach, without missing a spot. Even the superpower United States cast only one vote, and Suriname, recently famous from a Netflix drama, also cast one vote. To gain one more vote for victory, businesspeople ran tirelessly to African, Middle Eastern, and South American countries whose names are not easily recognized, and they still do.

From the conversation with the branch office head, there was a sense of pride that companies are doing their best for the national-level Expo hosting effort, but also a sense of regret. It cannot be helped. What is the current situation? With inflation and interest rate hikes sweeping the world, the economic situation is rapidly changing, and the business environment is at a tremendous turning point. Even if the heads of companies split their 24 hours to focus on management, it is not enough. They are truly dedicating their precious time for the nation.

The US-led interest rate hikes are pushing not only developed countries but also developing countries into an economic crisis worldwide. Korea is no exception. The won-dollar exchange rate has already soared past 1,400 won. The six consecutive months of trade deficits, occurring for the first time in 25 years, add to the sense of crisis. There is even a forecast that this year’s trade deficit will reach a record high of 48 billion dollars. Even in a situation where the focus should be on responding to this crisis, businesspeople have to engage in Expo hosting activities.

On the other hand, is the government, which receives full support from companies, fulfilling its role for the people and businesses? While our companies are running around for the Expo hosting, the government missed the US Inflation Reduction Act (IRA), which harms our companies. Despite the government and the Bank of Korea’s claims that the economic situation is not problematic, the exchange rate soared.

This Expo hosting competition is a heavy burden considering the current international situation. International politics decisively influence the hosting of large-scale international events. The success of the Seoul Olympics is an example. Amid the energy crisis, the US and its allies are watching Saudi Arabia, a competing country for hosting. This means the gap is too large to be filled by not only our businesspeople but also BTS and actor Lee Jung-jae.

There is still one year left until the Expo hosting decision. It is hard to predict what kind of economic 'black swan' might occur by then. Businesspeople have more than enough reasons to faithfully perform their roles until then. Easing the burdens weighing on their shoulders can truly be the way to serve the nation. If companies falter, the nation falters too.

Baek Jong-min, Opinion Editor