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| President Moon Jae-in speaks during a meeting with the leaders of the countries' top 30 conglomerates over Japan's export curbs at Cheong Wa Dae, Wednesday. From third from left are Mirae Asset Chairman Park Hyeon-joo, KT Chairman Hwang Chang-gyu, GS Group Chairman Huh Chang-soo, LG Group Chairman Koo Kwang-mo, Samsung Electronics Vice Chairman Yoon Boo-keun, Deputy Prime Minister Hong Nam-ki, Moon, SK Group Chairman Chey Tae-won, Hyundai Motor Group Executive Vice Chairman Chung Euisun and Lotte Vice Chairman Hwang Kag-gyu. Yonhap |
By Nam Hyun-woo
Korea's large business groups appear to be feeling burdened by the high-profile meeting between President Moon Jae-in and their leaders over the escalating trade conflict between Korea and Japan, company officials said Wednesday.
The officials, most of whom didn't expect Wednesday's gathering at Cheong Wa Dae to produce any meaningful outcome, said Seoul's worsening relations with Tokyo should be addressed through diplomatic means, not by companies. They fear that this could provoke the Japanese authorities and strain ties with their Japanese partners.
During the meeting with the leaders of Korea's top 30 conglomerates, Moon described the current trade spat between the two countries is "an unprecedented emergency" and the government and businesses should combine efforts to counter Japan's move.
"Above all, I believe there's a necessity to come up with a private-public emergency response system where the government and businesses can communicate and combine efforts," Moon said during the meeting at Cheong Wa Dae.
"Chiefs of major business groups, the presidential chief of staff for policy and the deputy prime minister should communicate continuously and come up with short- and long-term countermeasures," Moon said, stressing the role of large conglomerates in the countermeasures.
The economic tension between Korea and Japan has been escalating as the two countries are poised to stage a tit-for-tat after Tokyo imposed exports curbs to Korea of high-tech materials essential for manufacturing chips and display panels earlier this month. Korea is seeing this as Japan's apparent retaliation to last year's Supreme Court rulings here against Japanese firms over wartime forced labor.
Over Moon's remark, however, businesses showed lukewarm responses, with some expressing they feel burdened over the government's move.
"This trade conflict started from a political motive and this should be addressed with diplomatic efforts," an official at one of participating heavy industries conglomerates said, asking not to be named.
"At the meeting, business leaders were given one to two minutes to share their opinions, but all they can do is just update the President over the current situation," he said. "With the situation it is difficult to expect an effective outcome, this may be seen a demonstration that Korean firms are also angry over their Japanese partners."
Another official from the retail industry echoed: "Participating conglomerates are not just Korean firms, but global businesses which have partners and clients in Japan."
"Though the current export curbs are mostly affecting semiconductors, businesses all across industrial sectors participated in the meeting," the official continued. "This may be seen as Korea having one voice that Japan's move is unfair, but at the same time sending a signal to Japanese partners that firms are blending politics into their businesses."
Chip industry officials were also lukewarm about the meeting, saying they don't expect a tangible outcome in the near future.
Experts also expressed a similar opinion on the issue.
"The fundamental reason for this trade conflict is a failure in the political system managing history issues between the two countries," said Cheong In-kyo, international trade professor at Inha University.
"Responding to a diplomatic and political issue with trade policy means that the government's intention to address the trade conflict is weak," he said during a seminar by Korea Economic Research Institute on Wednesday. "Tit-for-tat for this kind of issue is nothing more than window dressing and this should be addressed through a summit between the two countries."
