This year, the South Korean economy is expected to face difficulties in both exports and domestic demand due to overlapping political uncertainties.
The global accounting and consulting firm Ernst & Young HanYoung announced on the 23rd that it hosted an online seminar on the theme 'The Era of Pivot: Prepare for the Future with Confidence' for the 2025 Ernst & Young HanYoung New Year Economic Outlook. More than 800 executives and employees from major domestic corporations attended the seminar, where Ernst & Young HanYoung introduced economic forecasts for 2025 and the 대응 전략 of corporations that align with the current business agenda.
The seminar began with opening remarks from Park Yong-geun, the representative of Ernst & Young HanYoung. Park noted, '2025 is expected to be the era of pivot, entering a new phase different from the past in terms of economy, technology, and geopolitical politics,' and added, 'This seminar was prepared to provide insights for corporations to confidently and boldly design their futures.'
Next, former Financial Services Commission Chairperson Ko Seung-beom explained the economic outlook for 2025 domestically and internationally. He stated, 'Most developed and emerging countries, except for the United States, are expected to continue a low growth trend,' adding, 'While interest rate cuts and technology diffusion will drive growth, downward risks, such as policy changes in major countries and deepening global trade conflicts, remain.' He emphasized concerns that with the expected slowdown in export growth, domestic demand may continue to suffer due to recent political uncertainties.
Furthermore, former Chairperson Ko outlined key economic issues that executives should focus on in 2025, including the U.S. Federal Reserve's interest rate cut outlook, the possibility of a soft landing for the Chinese economy, India's rise and influence, and the instability in domestic and international financial markets, stating, 'We are in a situation where upward factors like the accelerated commercialization of artificial intelligence (AI) semiconductors and falling oil prices are mixed with downward factors such as China's expansion of low-cost supplies and intensified global trade conflicts.'
Additionally, former Chairperson Ko noted, 'This year, domestic corporations must embrace a flexible approach to adapt to an ever-changing environment, as this adaptability will directly lead to performance. They should fortify their decision-making speed and flexibility with a mindset of 응형무궁.' He emphasized that to overcome economic uncertainties, a 4D strategy is necessary, which includes ▲ proactive market change detection (Detect) ▲ swift and accurate decision-making (Decide) ▲ optimal resource allocation (Deploy) ▲ immediate execution and promotion (Drive).
The following presenter, Kwon Young-dae, head of the Industry Research Institute at Ernst & Young HanYoung, analyzed why corporations need to have confidence in the era of pivot and examined success factors of corporations that possess actual confidence, presenting three factors: ▲ core business-centered portfolio rebalancing ▲ business model conversion in response to market changes ▲ proactive resource acquisition in preparation for the future.
Kwon stated, 'The era of pivot presents new challenges to corporations while also opening up opportunities for innovation,' and added, 'Corporations with confidence respond proactively to market changes, and based on this confidence, they boldly establish and execute strategies to lead the market. This approach can lead to differentiated results in a pivot environment.'
Subsequently, Ernst & Young HanYoung presented five necessary 대응 전략 for corporations in the era of pivot. These strategies include executing a ▲ divestiture strategy, maximizing performance improvement and a technology-based value creation strategy ▲ monetization through AI utilization ▲ expanding autonomous operational supply chains and enhancing cybersecurity.
Shim Chang-yong, a partner at Ernst & Young Parthenon, explained the strategy-based value creation strategy, saying, 'By selling off and partitioning non-core businesses, we can simplify business areas and enhance core businesses. The execution of a portfolio restructuring strategy, alongside enterprise-wide collaboration, bold identification of major themes, and meticulous execution management, can enhance corporate value.' He specifically highlighted the importance of strategic execution by introducing performance improvement cases of domestic corporations executed by Ernst & Young HanYoung.
Finally, Lee Chang-ho, a partner at Ernst & Young Consulting and leader of the Supply Chain & Operations in Asia-Pacific at Ernst & Young, explained the technology-based value creation strategy. He stated, 'AI is a key technology not only for cost reduction but also for generating financial performance,' presenting solutions for maximizing efficiency through the transition to customized solution subscription models and logistics and inventory management automation.
This partner emphasized that optimizing autonomous supply chains using big data and generative AI provides flexibility in responding to revenue increases, expense reductions, and market volatility. He introduced the importance of cybersecurity in AI adoption while also discussing a method for enhancing business capability and creating value through AI utilization in cybersecurity itself.