[Reporter’s Notebook] "Corporate Diplomacy" Is Not Government Assistance

Former Diplomat: "The Government and Companies Must Reset Their Relationship"
Intensifying Technological Hegemony... Advanced Industries Are National Power
When Companies Lead, the Government Should Support from Behind

"The government needs to reconsider its relationship with companies. Instead of merely regulating from a dominant position, it is necessary to build a cooperative partnership to fight together in the global market."

After publishing an article analyzing the 'overseas government relations' organizations of our companies competing in the global market recently, I received a call from a former ambassador. The article revealed that former Ministry of Foreign Affairs officials have secured key government relations positions in the 'top 10 conglomerates,' and that four major companies entering the North American market have spent 100 billion won on lobbying in the U.S. over the past five years. He shared his views on the article. Although the movement of former Ministry of Foreign Affairs personnel to companies is based on practical needs, he also expressed concerns that it could be misunderstood as collusion between the government and companies.

On one hand, I understood the concerns revealed by the former diplomat. South Korea grew its economy through a government-led growth model. The relationship between the government and companies naturally became unbalanced. Companies had to operate according to government policies and regulatory directions, and had to be highly sensitive to every word from the political sphere.

However, looking at how companies have recently strengthened their overseas government relations activities, they seem to be more proactive than the government. While the government has failed to perform its role, companies have formed business delegations centered on economic organizations and ventured abroad. This is because, amid the complex entanglement of global economic security due to U.S.-China hegemony competition and supply chain restructuring, companies need to directly persuade and engage with foreign governments.

Especially in the context of intensifying technological hegemony competition, strategic cooperation between companies and the government has become even more important. In advanced industries such as semiconductors, electric vehicles, batteries, and artificial intelligence (AI), corporate competitiveness is directly linked to national power.

Although our companies have expanded their reach worldwide, the government's attitude toward these companies has not changed significantly from the past. The culture of tightening regulations remains unchanged. The former diplomat's advice that "it is time to reset the relationship" reflects this context.

The increase in companies' overseas government relations activities is not merely about pursuing individual corporate interests. To respond to an uncertain international trade order, the government and companies must become cooperative partners. The argument that it is time to redefine the relationship so that the government is not a regulatory-focused dominant party (Gap) that holds companies back, but a reliable partner running together in global competition, is gaining persuasive power.

Diplomacy is negotiation aimed at maximizing national interests while adjusting conflicting interests. In the past, Deng Xiaoping advocated the 'black cat, white cat theory.' Both companies and the government must not forget the 'essence' that diplomacy is necessary for national interests.