Chairman Chang Byoung-wan of the National Assembly Trade, Industry and Energy Committee

Chairman Chang Byoung-wan of the National Assembly Trade, Industry and Energy Committee said, “We need to have an in-depth look at nurturing new industries as future growth engines.” The following are excerpts of a written interview in which Committee Chairman Chang spoke of policies on new industries, sustainable energy scheme among others.  

Question: Let’s start by talking about nurturing future new industries and sustainable energy policies.

Answer: Of late, not only Korea and other nations around the world are faced with such real economic crises as lackluster exports caused by a sagging global economy, and the weakening of competitiveness of the conventional mainstay industries, problems related to the restructuring of the shipbuilding and shipping industries, and the feeble domestic demand, caused by a slowdown in income growth. 

The reality is that low-income people find it difficult to improve their lives. Given the stark situation, we at the parliamentary committee overseeing and handling the overall policies on the Korean real economy feel a heavy responsibility while launching the first plenary session of the 20th National Assembly. We are committed with discussing diverse pending policy issues on how to revitalize the economy and improve people’s lives.

Strengthening of Industrial Competitiveness And Shared Growth

Discussions will take place on how to enhance exports, which have declined year-on-year every month from January 2015 until July 2016. 

The declining exports are partly attributable to the sagging global economy. 

They are primarily caused by such internal limitations as concentration of exporting countries, large-sized companies and a dependence on a few mainstay exports, so we will see to it that the government has established proper countermeasures to promote exports during parliamentary interpellation and budget deliberation sessions. Fundamentally, it seems necessary to discuss alternatives to cope with limitations of export-driven growth.

In particular, amidst a tendency of the international situation returning to protectionism, we have to observe closely the outlook on the United States’ ratification of the Trans Pacific Partnership Agreement (TPPA). If the installation of the Terminal High Altitude Area Defense (THAAD) in Korea touches off China’s steps to strengthen non-tariff barriers and trade conflicts, discussions will have to be made to take detailed measures to cope with them. 

The committee is expected to deal with such external trade issues as the disruption of exports, caused by the receivership of Hanjin Shipping and the Ministry of Trade, Industry and Energy’s roles in exporting and importing trends at a time when a supplementary budget has been introduced to boost the national economy. 

Next, Such Korea’s mainstay industries such as shipbuilding, steel and petrochemical industries are grappling with fierce global competition, and how to restructure businesses ridden with slipshod management are now under discussion. 

Fragmentary restructuring is no longer allowed, but an institutional overhaul needs to be done for continuous restructuring, not being limited to specific sectors. Now is the time when the government will have to make policy efforts to improve the fundamentals of the whole of the industries. 

The government has been hitting the accelerator to make policy efforts to create future growth engines, such as the “13 industry engine projects,” but whether they have yielded satisfactory outcomes is raising doubts. 

Our committee is seeking to enact laws, revamp irrational regulations and make budgetary considerations so that future growth engine industries the government and the private sector are nurturing can be put on the right track. 

As to policies on SMEs, designating businesses considered suitable for SMEs will likely emerge as a pending issue. Public voices are expected to be raised for the need to legalize the designation due to the prolonged delay in the recovery of domestic demand and the bipolarizing of large- and small-sized companies. 

The Korea Commission for Corporate Partnership now coordinates large- and small-sized company communities’ agreeing to set businesses allowable for SMEs on a voluntary basis and translating the deal into action.

In reality, both sides’ reaching an agreement is not easy, however. If the deal is not implemented, the SME side has no other option to enforce it except by requesting the Small Business Administration to readjust the designation of business suitable for SMEs. Under the stewardship of the commission, the “three years plus three years system” will expire at the end of next year. 

As the renewed period will terminate, a debate for legalizing the system may be reignited anew. 

Chairman Chang Byoung-wan of the National Assembly Trade, Industry and Energy Committee presides over a committee session to deal with pendcing issues.

Inspection into Direction of Energy Industry Policies

A lively debate is likely to be conducted on an energy supply policy shift with a focus on lowering Korea’s dependence on coal-fired power, nuclear power and expanding the portion of new and renewable energies. 

The MOTIE has expanded nuclear power and coal-fired power generation plans based on excessive power demand predictions. 

But some people argue that the counting of costs for dismantling old nuclear power units and treating nuclear radwaste means insufficient economics, and coal-fired power is blamed for causing minute dusts and global warning, and such technologies for efficient distribution of demand like the energy storage systems (ESS) will be continuously developed. The committee will have an in-depth discussion on how to realign energy public entities’ functions as the government came up with a plan to that effect in June, and how to materialize a plan to open electricity and gas supply businesses to the private sector during the plenary session.

Such issues as the progressive billing of electricity charges to houses, which has become a heavy burden on people due to the latest heat wave, and the procedure for designating a site for building spent nuclear fuel depository will likely be discussed during the current parliamentary interpellation session and in the course of deliberating bills. 

A keen concern on such issues as the exploration of projects to nurture new energy industries and energy welfare projects like energy vouchers. The committee has been credited with demonstrating conventional good practices of respecting each member and being engaged in active discussions and productive activities. I will devote myself to this exemplary committee by collaborating with ruling and opposition members during the first plenary session of the 20th National Assembly.

Chairman Chang Byoung-wan of the National Assembly Trade, Industry and Energy Committee shakes hands with Deputy Prime Minister-Minister of Strategy and Finance Yoo Il-ho during their meeting at the National Assembly on April 29. (Photos: Rep. Chang Byoung-wan’s Office)