[Insight & Opinion] The Pitfalls of Win-Win Growth and Coexistence

If Political Slogans Are Used to Apply Pressure Too Soon,
They Will Block Innovation in Global Leading Corporations
Even Industry Giants Like Intel and GE Face Decline

The problem of capitalism's market economy is often pointed out as the gap between the rich and the poor. In any system where humans live, it is a reality that gaps exist, contrary to words or theories... Anyway, recently in our country, it was announced that the gap in business income is 10 times, and the gap in personal income is 7 times. Based on the perception that these results stem from greed and selfishness, there was even a mid-level politician making the absurd claim that the CEO's salary should be limited compared to workers. The government is promoting policies such as win-win growth and coexistence, branding it as warm capitalism. The idea is to create a world where we live together in this way.

First, the wealthy at the top should cultivate a culture of donating generously, like in developed countries. Also, not only should the charitable acts of celebrities be publicized, but the donation activities of individuals and companies should also be announced or publicized. This would help alleviate some of the negative feelings toward the rich.

Regardless of progressive or conservative views, the government promotes win-win growth and coexistence as a treasured sword passed down through generations, but if applied improperly, it can harm economic activities. Win-win and coexistence policies are basically demands aimed at large corporations.

Large corporations have a lot of assets, enjoy many benefits, and are expected to be enduring enterprises, so they are asked to play a role for a world where we live together. However, it should be understood that even these large corporations are struggling just to survive amid global competition. Recently, concerns about Samsung Electronics have been growing. In the U.S., Intel, which enjoyed a boom period due to the semiconductor boom, was removed from the Dow Jones Industrial Average (top 30 U.S. companies) after 25 years and replaced by Nvidia, which was shocking news. In recent years, major U.S. companies such as General Electric (GE), General Motors (GM), Bank of America (BoA), and AT&T have also been successively delisted.

In light of these global market conditions, win-win growth and coexistence policies should be mutual and beneficial to both parties, not demands imposed unilaterally. Moreover, the practice of pressuring economic organizations and even companies struggling to survive in deficit to participate reluctantly under duress must disappear.

Policies that hinder corporate growth and business contradict both the spirit and outcomes of win-win growth and coexistence. Although it is political rhetoric, ultimately it helps no one. Restrictions on the opening or operating hours of large marts are measures intended to protect small businesses nearby, but the operating opportunities for large marts decrease, consumers are inconvenienced and turn to online shopping, suppliers have fewer opportunities to supply, and small businesses do not actually benefit, so no one gains.

The most serious issue is policies that block innovation. When an innovative shared taxi business model emerged, the representative of that business was sentenced to prison to protect existing taxi operators, but after dragging on for four years, the Supreme Court ruled not guilty. Such measures have destroyed the momentum and opportunities for innovation and new job opportunities. Innovation was blocked under the pretext of coexistence with the existing taxi industry, but recently, it is said that existing taxis cannot even operate because they cannot find drivers. As a result, South Korea is being stigmatized as a country with innovation capability but unable to accept innovation.

Actions that pressure large corporations or block growth opportunities and innovation by falling into the trap of win-win growth and coexistence due to premature political slogans must stop.

Kim Hong-jin, CEO of Work Innovation Lab