The First Corporate Summit of the K-Innovation Economy Forum

Joint Effort by the Korean Academic Society of Business Administration and the Federation of Korean Industries – Successful First Corporate Summit of the K-Innovation Economy Forum

We are thrilled to announce the successful collaboration between the Korean Academic Society of Business Administration and the Federation of Korean Industries, resulting in the inaugural Corporate Summit of the K-Innovation Economy Forum, held on July 20, 2023, at 7:30 AM.

The K-Innovation Economy Forum was introduced as a “Private-Led Innovation Growth Platform” during the 2023 Spring Academic Conference in June. This innovative forum brought together private companies, universities, research institutions, civil society, and government sectors, united by the mission of driving innovation-led growth in our economy.

The summit focused on critical issues, including prolonged trade deficits and increasing international direct investment deficits, which have impacted the vigor of our domestic industrial innovation ecosystem. Our primary goal was to promote sustainable innovation-driven growth, with a special emphasis on encouraging domestic industrial innovation investments by large corporate groups, ultimately leading to the creation of high-quality jobs.

The 2022 international direct investment deficit amounted to approximately KRW 80 trillion (USD 58.7 billion), coinciding with the prolonged trade deficit and contributing to economic stagnation. Additionally, we highlighted the trend of outbound direct investment growing at a higher rate (10.1%, CAGR) compared to foreign direct investment (inward investment) growth rate (5.4%), resulting in an increasing deficit in the international direct investment balance, reaching USD 58.7 billion in 2022, with an average annual deficit growth rate of 12.1%-CAGR.

Over the past decade, industrial innovation investments have favored overseas opportunities, leading to sluggish economic growth. From 2017 to 2022, the average annual growth rate was only 1.33%(CAGR), significantly lower than the G7 average of 3.31%, and the average of the four Nordic countries (Sweden, Norway, Denmark, Finland) at 3.07%. This economic situation has been further reflected in various socio-economic indicators, such as soaring debt levels, a rise in struggling companies, and an increase in precarious jobs.

To confront these challenges head-on, the esteemed Korean Academic Society of Business Administration, with over 10,000 members, and the Federation of Korean Industries, representing the industrial sector, jointly hosted the Corporate Summit of the K-Innovation Economy Forum. Our summit aimed to explore innovative solutions to actively counter low-growth stagnation. We engaged research directors from six major business groups with expertise in management, economics, and innovation to cultivate a private-led innovation growth ecosystem. Additionally, President Dr. Kim Jae-Gu presented the “Five Key Strategies for K-Innovation Growth.”

During the summit, Vice President Dr. Lee Young-Dall discussed the “Global Companies’ Innovation Ecosystem Competition and Our Response Strategies.” He outlined seven challenges for the private sector and twelve challenges for the government sector that need to be addressed to enable Korean companies to compete with global counterparts and lead innovation.

The summit fostered inclusive discussions among research heads from six major business groups, including Samsung, SK, Hyundai Motor, LG, POSCO, and Lotte, alongside representatives from various financial and public sectors.

We were thrilled to witness the active engagement of executives from six major business groups, other corporations, financial leaders, and public sector officials, all displaying keen interest in “Private-Led Innovation Growth.” Government representatives, including Lee Jung-Hyun, deputy chair of the Presidential Committee for Decentralization and Balnced Development, attended to gain direct insights into the constraints on domestic industrial innovation investment in the private sector. Additionally, several aides from the National Assembly were present to familiarize themselves with the content of the summit.

Looking ahead, the Korean Academic Society of Business Administration plans to officially launch the “K-Innovation Growth Promotion Headquarters” in collaboration with major economic organizations during the 2023 Summer Convergence Academic Conference at BEXCO, Busan, from August 16 to 18. The conference will unveil a series of plans to actively promote “Private-Led Innovation Growth.” We aim to invite representatives from mid-sized companies, small and medium-sized enterprises, and startups for future editions of the Corporate Summit. Additionally, we will organize continuous Academic-Research, Civic, and Public Summits, encouraging active participation from universities, research institutions, civil society, media, government, and the National Assembly.

Together, we are determined to drive innovation and shape a promising future for our economy. Stay tuned for more updates and exciting progress!