[Editorial]Terms of financial reform

Strikes by banking industry workers are so far making little impact on our capital markets. At this point, the mutual efforts between the government and the banking industry unionists to bring about an early ending of the strikes via dialogue and negotiations are very reassuring for the nation`s economy. It is very encouraging, too, to see that the negotiating parties this time are displaying sophisticated negotiating skills and mature attitude than the disputants had shown in recent cases of other social conflicts.

Albeit the tentative agreement reached by the parties falls short of complete settlements, they made some important gains by narrowing their differences on several vital issues in dispute. The breathrough will long be remembered in the country`s financial history.

First, the settlement, if finalized, will enable us to accomplish full-scale financial reforms since the union now appears to accept, with some conditions, the government`s move to legislate the establishment of a financial holding company which the strikers have thus far strenuously objected to. The arrangement of the new financial holding firm is regarded as a necessary means for the specialization of banking industry and for changes in ownership structures of debt-ridden banks while making them a mega-sized super bank to meet the industry`s international trend.

The negotiations` another gain is the fact that the government acknowledged some flaws in its control over banking and financial sectors and came to suggest the measures to address the issue. The government`s underhanded control of banks and financial institutions has in fact been one of the major causes for the bank employees` grievances. Their stand holds true to argue that the government`s control over banks has been a major cause for banks` heavy debts and insolvency. In the wake of the bank strikes, therefore, the government is urged to make striking changes in its execution of financial policies. Financial markets must solely be left to the laws of market excepting some extenuating circumstances. The pains we experience today must provide us with a threshold to learn, and root out, adverse effects of the government`s control over banks and capital markets.

Implementation of what is agreed, alone, will give an enormous amount of work for the government and the union. They may encounter greater difficulties in working out the specific details than they did in hammering out the agreement on matters of general principles for the strike settlement.

After the final negotiations, the two parties will have to undertake the structural reforms of financial sectors. Some sacrifices and pains will inevitably follow even if the reform will not be a forced one. In the process, conflicts can recur between the two parties whose patience and tolerance are imperative for a satisfactory implementation of their agreement.

An emphasis must be placed here on the need for social programs to provide jobs for those bank employees inevitably laid off in the process of financial reforms. A viable alternative may be a development of fresh financial service sectors together with the five leading, industrial organizations` initiation of programs to create jobs for the laid-off workers.

The government and unionists are called upon here to bring their negotiations to a successful end by means of genuine dialogue and talks, and to get on with their next priority for the much belated structural reform. To be sure, financial reform is the nation`s preemptive task to accomplish for the development of our market economy. Its beneficiary is none other than all our people. For that reason, we will keep a vigilant eye on their will and commitment to the reform.