**EY Hanyoung’s New Year Economic Outlook Seminar Highlights**
**■ Former Financial Services Commission Chairman Koh Seung-beom Emphasizes India’s Rise**
**”It’s a Pivot Era… Companies Must Boldly Adapt to Market Changes”**
In a recent assertion, it was suggested that most countries excluding the United States will experience low growth this year, urging companies to actively respond. Particularly for Korea, political uncertainties may complicate both exports and domestic demand.
Former Financial Services Commission Chairman Koh Seung-beom conveyed at EY Hanyoung’s online New Year Economic Outlook Seminar, attended by over 800 executives from major domestic companies, that most developed and emerging economies, excluding the U.S., will continue to experience low growth. The seminar was held under the theme, “Pivot Era, Prepare for the Future with Confidence.”
Koh noted, “While interest rate cuts and technology diffusion will drive growth, risks such as major countries’ policy changes and escalating global trade conflicts remain.” He pointed out that in Korea, export growth is expected to slow, and domestic demand may persistently struggle due to recent political uncertainties.
To overcome such economic uncertainties, Koh advised companies to enhance swift decision-making and flexible response capabilities. He proposed the ‘4D’ strategy as a means: Detect (proactively sensing market changes), Decide (making swift and accurate decisions), Deploy (optimizing resource allocation), and Drive (prompt execution and promotion).
Koh stressed that this year, corporate management should pay attention to factors like the Federal Reserve’s potential rate cuts, China’s economic soft landing, India’s emergence, and domestic and international financial market instability. He explained, “We are in a situation where favorable and unfavorable factors such as accelerated commercialization of AI semiconductors, falling oil prices, China’s increased low-cost supply, and intensified global trade conflicts coexist.”
Other seminar attendees agreed that companies must boldly strategize this year. EY Hanyoung suggested five response strategies necessary for companies in the pivot era: executing strategies for division and divestiture, maximizing performance improvement, generating revenue through AI, expanding autonomous supply chains, and enhancing cybersecurity.
Park Yong-geun, CEO of EY Hanyoung, stated, “This year marks the pivot era, entering a new phase different from the past in economy, technology, and politics.” Kwon Young-dae, director at EY Hanyoung’s Industry Research Institute, emphasized, “Confident companies are proactively responding to market changes and boldly setting strategies to lead the market, which can result in differentiated outcomes in a pivot environment.” Shim Chang-yong, partner at EY-Parthenon, argued that companies should simplify business areas by selling or dividing non-core segments and strengthen core businesses, thereby enhancing corporate value through enterprise-wide collaboration, identifying major themes boldly, and meticulous execution management.