Efforts to Grow as a Global Power
Efforts to Grow as a Global Power
At present, South Korea is putting every effort into transforming itself into a global economic system. Although the country accomplished rapid growth within a short period of time, this led to an imbalance in the development between large businesses and small and medium-sized enterprises (SMEs) due to the economic policy that was heavily dependent on the export led by large enterprises. As such, the need for shared growth was singled out as a potential solution to the problem. This was recognized as a global issue amid the global economic crisis in 2008.
In 2010, the Presidential Commission for Shared Growth for Large and Small Companies was launched with a view to settling conflicts between large-sized businesses and SMEs. The commission is assigned with the duties of fostering an atmosphere conducive to shared growth in industries, monitoring and announcing large businesses’ shared growth indices, designating sectors and items suitable for SMEs, and resolving conflicts between large businesses and SMEs based on a social consensus.
The 2010 G20 Seoul Summit was held, with the theme: Shared Growth Beyond Crisis. The G20 Summit was established following the global economic crisis in 2008, based on the view that it was necessary to have major emerging countries take part in international economic discussions, as the G7 Summit inevitably had certain limitations in this respect. It was pointed out that the international financial system had failed to reflect the fact that the share and role of emerging countries had expanded to a considerable extent over the previous three decades.
At the 2010 G20 Seoul Summit, South Korea assumed the position of the Chair, which indicates that the country’s active role in the international economic order.
The summit leaders adopted the G20 Seoul Summit Leaders’ Declaration along with the Seoul Summit Document for the framework for strong, sustainable and balanced growth. They also announced three annexes: Seoul Development Consensus for Shared Growth, the Multiyear Action Plan, and the Anti-Corruption Action Plan.
The Seoul Summit Leaders’ Declaration emphasized the role of developing and emerging countries in a move to put an end to the foreign exchange war between major countries and to reform the IMF, which used to be centered on industrialized countries. It also focused on the pressing need to stabilize global financial markets and provide support for impoverished countries struggling for economic development. This declaration went a long way towards enhancing the status of South Korea in global economic and financial markets.