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Shared growth must move from talk to action

Published: 29 Apr. 2026, 00:02

Chung Un-chan

The author, a former president of Seoul National University, is the chairman of the Korea Institute for Shared Growth.

Capitalism has created a scale of prosperity unmatched by any system in human history. Korea has also risen within that dynamic current to become a major economic power. Yet behind that outward success lies a deepening divide between large corporations, public institutions and financial firms on one side and small and socially vulnerable enterprises on the other.

Han Sung-sook, minister of SMEs and Startups, fourth from left, takes part in a performance with attendees, including Lee Dal-gon, chairman of the Commission for Corporate Partnership, fifth from left, at the 2025 Shared Growth Week ceremony held at the Korea Federation of SMEs in Yeongdeungpo District, Seoul, on Nov. 25, 2025. [MINISTRY OF SMEs AND STARTUPS]

A country that fails to address polarization has no future. Since founding the Korea Institute for Shared Growth, I have consistently argued that finding a path for stronger and weaker players to coexist is essential to sustainable growth. Nature offers a similar lesson. For a tall tree to withstand storms and grow, its unseen roots must be strong enough to support it. For leading firms to advance further and for the national economy to take the next step, the soil must allow small and vulnerable businesses, which function as those roots, to breathe and grow.

Over the past decades, successive administrations have agreed on the need for shared growth, even if they used different terminology. The reality, however, has been stark. Rhetoric has been abundant but action insufficient. What has persisted is a pattern that might be described as “NATO,” meaning No Action, Talk Only. Policies aimed at supporting vulnerable firms have repeatedly been blocked by bureaucratic barriers and resistance from vested interests, preventing them from reaching the field.

To break this impasse, the first task is to open part of the public procurement market, which remains largely dominated by public institutions. The government currently limits large corporations’ participation through a system that designates certain products for competition among small firms. In practice, however, many public bodies and their affiliates exploit exceptions to maintain control. As a result, numerous small businesses are unable to secure even a foothold, facing high barriers not only in public procurement but also in the financial sector.

There are signs of change. Following a presidential directive emphasizing the protection of vulnerable enterprises and the need to foster shared growth, Korea Electric Power Corporation decided to open some outsourced operations to private firms. This marks a potential turning point. Other public institutions should now move beyond passive observation and take concrete steps aligned with national policy.

At the core is the establishment of a “market segmentation” system tailored to company size. For instance, standard invoice volumes could be allocated to competition among small firms, while customized work could be reserved for socially vulnerable enterprises under a two-track approach. Such a system could improve efficiency while providing a stable foundation for independence.

Resistance in the field remains strong. Large-scale projects such as electronic litigation and penalty notices are still handled in a closed manner, often justified by security concerns. Yet private firms with government-certified information security management systems already possess high-level capabilities. Utilizing competitive private services would reduce costs and improve administrative efficiency. Clear guidelines from the presidential office are needed to ensure that shared growth is demonstrated through action.

On Sept. 12, 2024, a visitor tries a wheelchair racing game at the inaugural Korea Social Value Festa held at COEX in Gangnam District, Seoul. The event brings together the government, private sector, academia and businesses to showcase efforts to address social issues and explore better solutions. [NEWS1]

Momentum in the public sector should extend to finance. The five major banks have not sufficiently opened access in terms of credit, fees and settlement practices for smaller firms. Genuine openness requires structural changes in these areas.

Ultimately, the key to reducing polarization lies with large corporations. Their role should include improving supply chains, expanding technology cooperation and sharing market opportunities. Fulfilling social responsibility requires opening paths for smaller firms rather than relying on formal compliance.

True economic innovation begins not only with technological progress but with progress in relationships. It is time to move beyond talk and toward action, opening markets and sharing opportunities as the only viable path to overcoming inequality.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.