[Herald Interview] 'Future growth is not in your familiar markets'

JEJU -- Economic power is shifting to Asia and Africa, with technology challenging every sector. Add to these changes, ageing populations and more people feeling left behind, unhappy and even angry at society.

Korea, which depends on global consumers to drive economic growth, must understand these worldwide changes and respond quickly to them, said Dominic Barton, a global managing director of consulting firm McKinsey & Company. 

“Korea did very well, responding to the (2008) crisis. It actually did better than G2 countries, but now the economy has flattened,” Barton said in a group interview with Korean media in Jeju on Wednesday. He visited the southern island for a four-day forum organized by the Korea Chamber of Commerce and Industry.

Beyond concerns about the economy’s sluggish performance, Barton is worried about the future of Korea -- whether the country is ready for what is to come which entails some very serious challenges, according to him.

“You’re going to have fewer workers. Your core export market is not as strong as it was before,” he said.

“I am actually confident that Korean businesses, and the country as a whole, will make it. But there’s just a lot of work to be done to make it happen.”

The future is not just about challenges, there are opportunities for Korea as well, he added.

“Across the globe, 2.4 billion middle-class consumers are emerging. This is a huge growth opportunity. Growth is out there but it’s just not in the markets that we’re familiar with,” he said.

One example is the world’s fastest growing train route, the Silk Road, which cuts right through Central Asia that has been long overshadowed by East Asia.

“Another area of the world that we don’t think enough about is Africa,” he added.

Calling himself a “big fan” of Korea, the Canadian said Korea and its companies have a history of changing from the ground up. Samsung, for instance, started off as a small trading firm selling noodles and dried fish, but innovated continuously to become what it is now.

Korea needs more of that, said Barton, who ran McKinsey’s Korean office from 2000-2004 and then the firm’s Asia operations before becoming global managing director in 2009.

“New businesses need to be created. You have to reallocate resources to move to different markets and you have to deal with technology,” he said.

“Everyone must move faster.”

By Lee Sun-young (milaya@heraldcorp.com)