Entrepreneurial spirit key to overcoming economic challenges: official

By Lee Joon-seung

SEOUL, Nov. 3 (Yonhap) -- Reviving the entrepreneurial spirit of South Korea's business community is key to overcoming the current global economic crisis, a senior government official said Monday.

Knowledge Economy Minister Lee Youn-ho said at the first international conference
aimed at breathing new life into entrepreneurship, that present difficulties
require aggressiveness, dynamism and willingness to meet challenges.
"The ideal time to revive the entrepreneurial spirit is when people believe we
are in a crisis situation," the senior policymaker said.
He added that companies should use the present situation to strengthen the
competitiveness of their core business areas that would permit solid growth down
the road when the global economy shakes off its woes.
Asia's fourth largest economy and 11th largest trading nation expects growth to
fall off to mid 4 percent levels this year from 5 percent in 2007.
The remarks reflect Seoul's broad economic strategy of confronting difficulties
triggered by the U.S. sub-prime mortgage debacle and the Lehman Brothers
bankruptcy by getting businesses to make long-withheld investments.
The "pro-business" Lee Myung-bak administration pledged to correct market
distortions that have hurt investment and moved to slash red tape and implement
tax cuts.
It is also pursuing a policy drive to improve research and development so
technological innovations can lead future growth.
Government studies have claimed that South Korea experienced boom periods right
after its businesses built up their supply capacity, while facing hard times when
they cut back on spending.
In the past decade, South Korea's business investment has effectively stood
still, while China saw its so-called asset stocks double and money poured into
the building of new factories and various infrastructure projects.
The minister's remarks were echoed by Korea International Trade Association
(KITA) chairman Lee Hee-beom, who said that South Korea has come a long way, from
being an impoverished agrarian country to becoming an economic powerhouse able to
export US$371.5 billion worth of goods as of last year.
"The country has potential for growth and although external conditions may hurt
exports in the near future, efforts must be made to get entrepreneurs to confront
challenges head on and become less fearful of taking risks," the representative
of the business umbrella group said.
He said that if executives took an aggressive posture, a second "miracle of the
Han River" could be achieved, mirroring the country's economic growth in the
1970s.
Others at the gathering held in eastern Seoul said South Korea should draw
lessons from past adversities that can help plot a course of the future.
Park Tae-joon, honorary chairman of Pohang Iron and Steel Co. (POSCO), said the
country faced tougher situations during the repeated oil shocks that rocked the
world and during the 1997-98 Asian Financial crisis that cause it to seek
assistance from the International Monetary Fund.
The founder of the POSCO then said all economic actors must seek to work together
in overcome current difficulties.
"The situation calls for unified leadership, harmony between workers and
companies, political cooperation and trust between the government and people," he
said.
The one-day event hosted by business groups like KITA, the Korea Chamber of
Commerce and Industry and the Federation of Korean Industries, in addition,
permitted input on current developments and future prospects from global business
leaders including Jimmy Wales, Internet entrepreneur who co-founded Wikipedia, a
free open content encyclopedia in 2001.
Hermann Simon, chairman of Simon-Kucher & Partners, Strategy & Marketing
Consultants and Amar Bhide, the bestselling author of "The Origin and Evolution
of New Businesses" also took part in discussions.