SK Group Chairman Chey Tae-won, left, speaks to Minister of the Interior and Safety Yun Ho-jung, center, during a panel discussion at a forum held by the Center for Social Value Enhancement Studies (CSES) in Gangnam District, Seoul, Tuesday. Courtesy of CSES

SK Group Chairman Chey Tae-won urged Korea to redesign its growth model so the country can achieve economic growth and reduce social costs simultaneously.

During a panel discussion with Minister of the Interior and Safety Yun Ho-jung at a forum held by the Center for Social Value Enhancement Studies (CSES) on Tuesday, Chey noted that economic growth itself could be constrained if social problems are not addressed.

“The conventional way of measuring economic growth through rising gross domestic product (GDP) cannot address various social problems including polarization,” Chey said. “The future growth model should be redesigned to achieve economic growth while simultaneously reducing social costs.”

SK Group Chairman Chey Tae-won speaks during a panel discussion at a forum held by the Center for Social Value Enhancement Studies (CSES) in Gangnam District, Seoul, Tuesday. Courtesy of CSES

Chey said establishing a system to measure social value and providing appropriate incentives are key tasks in this endeavor.

He noted that the SK Group has been quantifying the scale of corporate social value creation and reflecting it in management, adding that if activities addressing social problems are measured in quantitative terms and rewarded with incentives, companies’ participation could expand.

“There are limitations of existing GDP indicators, as they do not sufficiently reflect social and environmental value,” he said. “We need to start debates on new growth indicators that encompass social and environmental values.”

Yun, for his part, highlighted the importance of solidarity and cooperation in overcoming challenges stemming from low economic growth and polarization.

“The most important change for growth must begin with the recovery of people and communities,” Yun said during the session. “To achieve this, it is necessary to revitalize the social solidarity economy centered on local communities. … The government should design this structure, while innovation and expansion in the field should be driven by companies and the market.”

Source: Korea Times News