Andre Andonian McKinsey, the representative of the Korean office, is interviewing at the McKinsey office in Jung-gu, Seoul on the 1st. McKinsey
Global consulting firm McKinsey advised the South Korean government’s employment policy to focus on creating more productive jobs, not just increasing the number of jobs. It is based on the government’s plan to directly supply more than 1 million jobs this year.
Andre Andonian New McKinsey Representative of Korea
Korea’s pre-corona level recovery in the second quarter of next year
Korea-Japan trade conflict, damage to both countries
In an interview at McKinsey’s office in Jung-gu, Seoul on the 1st, Andre Andonian McKinsey, the new CEO of the Korean office, said, “Korea will need more than 800,000 software engineers and data scientists by 2030. “Korea will recover to the level before the novel coronavirus infection (Corona 19) in the second quarter of 2022,” he said. “It is a time when Korean companies can take advantage of their strengths to implement a paradigm shift.”
He has been the CEO of McKinsey’s Japan office for the past five years and consulted with a number of Japanese companies. He said about the recent deteriorating trade relations between Korea and Japan, “the situation in which the trade conflict continues will not benefit both countries.” The following are questions and answers.
- The global economy is gradually escaping from the Corona 19 shock.
- 2021 will be a turning point. A survey of executives around the world found that the worst-case scenario was avoided, but it was not the best-case scenario. In the case of the U.S., it is predicted that the economy will normalize in the second quarter of this year and when collective immunity is formed in the third and fourth quarters. Depending on variables such as virus strain and delay in vaccination, there may be a difference of about one year. Korea expects to recover to pre-Corona 19 levels in the second quarter of 2022. This is faster than the third quarter of 2022, when the global economy is expected to recover.
- How to seize the opportunity in the era of’post corona’?
- The more important it is at times like this, the more important the company’s preparation is. According to McKinsey’s study, the gap between high performers and latecomers in a crisis is widening. A successful company managed to play the piano using all the keys. It means that companies that are well prepared in all areas, such as aggressive resource redistribution, active M&A, digital ecosystem construction, and agile decision-making, are succeeding.
- What strategy should the Korean industry plan?
- Korea has been strong in various industries, and I think it can now use this strength to carry out a paradigm shift. The automotive industry, which was mainly focused on hardware, is converted to a mobility industry including software, and the traditional energy industry is converted to renewable energy. In the new digital age, businesses must be provided with an environment where they can test and learn. At the same time, regulations that balance personal information protection issues such as data privacy will be needed.
Andre Andonian McKinsey, CEO of Korea Office. McKinsey
- What more should Korean companies prepare for?
- It was encouraging that Korean companies were setting bold goals. Setting bold goals is an important prerequisite. For Korean companies to succeed, digitalization is needed first. According to McKinsey statistics, 70% of companies seeking digital transformation fall into a’pilot trap’. After digitization is executed once like a pilot program, it fails to spread within the organization. Digital transformation can maximize its effectiveness when 74% of its targets are implemented within the first year. In addition, more agile work and decision-making methods and the use of global talent are needed.
- The economic crisis has made it difficult for companies to increase employment, but the government is planning to supply more than 1 million direct jobs this year.
- Considering the trend of job decline in the past, I think the Korean government’s direct job creation plan is a very high goal. In order for the government to achieve this goal, efforts will be required in close cooperation with the private sector. It is not desirable to simply increase the number of jobs. Productivity must also increase. Since quality is just as important as the amount of employment, it is especially necessary to cultivate human resources in fields such as cybersecurity and data analysis in the upcoming digital era. McKinsey expects to have 800,000 software engineers and data scientists in Korea by 2030.
- The characteristics of companies whose value has soared in the corona era and what industry will be noticed in the post corona era?
- As a result of McKinsey’s survey of 400 companies, it was found that companies that actively applied projects related to the 4th Industrial Revolution have grown well despite the crisis. The characteristics of these companies are: ▶Digitalization is rapidly progressing. ▶Customer experience is important. It is not easy to pinpoint which industry will be in the limelight, but online e-commerce (e-commerce) will be important in B2C (business-consumer transaction). Only 60% of all companies were found to be somewhat prepared for e-commerce. In addition, the biopharmaceutical field and eco-friendly and sustainable fields such as electric vehicles and batteries are expected to be promising.
- I served as the CEO of McKinsey’s Japanese office for 5 years. What if you compare Korean and Japanese companies recently?
- There are many similarities. Both countries depend on exports, and a culture of collaboration is their strength. The challenges facing both countries are also similar. Along with the aging problem, there are also questions about the possibility of success in the digital age. Korean and Japanese societies will need to discuss lifelong employment and employment flexibility. This is because employment flexibility will be important in an era of global competition.
- Are Japanese companies agreeing to or compelling to comply with the Japanese government’s export restrictions to Korea? What are your thoughts on the conflict between the two countries?
- Both Korea and Japan are highly dependent on trade, and in the post-corona era, they must seize opportunities and move forward as a leading country, but maintaining a trade conflict is not beneficial to both countries. Japanese companies are structured under the regulations of the Ministry of Economy, Trade and Industry of Japan. As an Armenian Austrian who experienced genocide in World War I, he shares some of his historical feelings. Hopefully, it will be resolved in a direction that is beneficial to both countries.
Reporter Seongbin Lim [email protected]
André Andonian
▶2021 McKinsey Korea Office Representative
▶2016~2020 CEO of McKinsey Japan Office
▶ 1988 McKinsey joined the Dusseldorf office in Germany
▶Working at IBM, Masco Corporation, etc.
▶Master of Business Administration, University of Pennsylvania Graduate School of Business, Bachelor’s degree in Economics, University of Vienna, Austria
▶Born in June 1962