Wednesday, February 6, 2013

K. R. KIM

The Vice Chairman & CEO, Videocon Industries (formerly LG India head), takes a break from company matters and talks to B&E’s Deputy Editor Virat Bahri, on his unique perspectives of how India and Korea can help each other achieve their objectives

B&E: You have been in India for the past 12 years. What is your view of the Indian economy’s transition and also about its future?
KRK: For the next 30 years, India and China will play a big role; be it politically or economically. The challenge for China in the next 30 years will be how they can improve the political situation and how they can convert to a democratic country in a gradual and stable way and in a peaceful manner. For India, the challenge in the next 30 years will be how India can maintain a 8-9% GDP growth to get out of poverty. Which is easier? India’s challenge to grow continuously by 8-9% will be easier than China’s democratic transition. Political change is much more difficult. India did a good job post independence to maintain a democratic system; not a 100% perfect system, but who is perfect? India has a good foundation in its political system. Now it is the time for India to grow.

B&E: What are the similarities and differences between India and Korea as markets?
KRK: All three countries (China, Korea and Japan) are built on military culture and discipline. Even the weather is very different. Winter is very cold in Korea. Climate also changes the people’s mindset. India is a semi-tropical area where most areas have very less winter. It means an easy life; and is good for philosophy! On the other hand, the key similarity is the mindset of being Asian. In Asian countries, basic philosophy is Buddhism. Hinduism and Buddhism are 90% similar. So philosophically they have a common ground.

B&E: India and Korea have signed a historic free trade agreement. How can the two countries leverage on each other’s strengths?
KRK: If you see Korea and India, what Korea did in the last 30 years was hard culture development – manufacturing, discipline, product oriented. Korea improved a lot over the last 30 years. During the Korean war, Korea received aid from India. After that, Korea developed economically and did a good job of developing what I call hard culture. India developed soft culture in the last 30 years – democracy, software, content oriented. Now it’s time for Korea to inculcate India’s soft culture and India has to inculcate more of Korea’s hard culture. We cannot classify everything in that way, but this is to simplify the discussion. Without soft culture, Korea cannot become a high income country. Korea wants to go to around $40,000 income levels. But without improving the soft culture including the political situation and having flexible mindsets and software and content orientation, this cannot happen.


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

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