South Korea's exports have been falling for nearly half a year as the country reels from
the impact of the coronavirus outbreak. Geopolitical uncertainties have also delivered a blow to
the heavily export-dependent economy. And with the economic fallout of the virus expected
to last months possibly years it's clear that the country's industries need to turn the
pandemic crisis into an opportunity to build new engines of growth.
To discuss how Korean exports will be affected down the line and how businesses can reinvent
themselves,... we connect with Dr. Yang Jun-sok,... Professor of Economics at the Catholic University
of Korea. We also have joining us Dr. John A. Quelch, Dean of the University of Miami
Herbert Business School. Dr. Jun-suk Yang: South Korea's exports fell
again during the first twenty days of May, due to the impact of the coronavirus outbreak.
With the spread of COVID-19 and its economic fallout expected to rumble on for the foreseeable
future, with no one knowing when global demand will bounce back, which industries will take
the biggest hit?
To both: How will South Korean companies, particularly SMEs be affected by the ongoing
U.S.-China trade war? Dr. John A. Quelch: U.S. President Donald
Trump says his administration's working to revoke Hong Kong's special trading status.
If this happens, what will be some of
the major changes? Dr. Quelch: Chinese state media have
said the U.S. is bluffing when it says it will
end Hong Kong's special status? Do you think it's likely, and over the coming weeks, do
you think Washington and Beijing will try to at least negotiate?
Dr. Yang: What does the uncertainty over Hong Kong mean for
South Korean businesses, especially SMEs? Dr. Quelch: In the meantime, South Korean
companies need to somehow restructure and reinvent themselves in the global market.
Throughout the decades, South Korea is focused on being a fast follower than
a first mover of new technologies, products and services. What
do you think have been the main limitations or barriers to innovation?
Dr. Yang: South Korea is aiming to boost
its so-called "non contact" sector, or digital services sector by boosting medical and education
technologies. Do you see a big potential there and what kind of barriers need to be tackled
first? Dr. Quelch: Which industries or products do
you think Korean companies should focus on growing as new engines of export growth?
Dr. Yang: South Korea's central bank cut its key interest rate
to a historic low of 0.5% last week. Will this help boost the
economy for now? Or
is it a bit pointless now? That's all we have
time for today but thank you
for
your incredible insights. Dr. Yang Jun-sok,... Professor of Economics
at the Catholic University
of Korea,...
and Dr. John A. Quelch, Dean of the University
of Miami Herbert Business School. Thank
you
for
joining
the programme.