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FKI urges improvements in reform systems

Posted July. 19, 2000 22:00,   

한국어

The nation`s business circles are strongly demanding the improvement of corporate restructuring systems, eased conditions for the establishment of holding companies and the right to veto trade agreements with labor unions in relation to mergers.

Reflecting the opinions of the restructuring headquarters of the 30 large conglomerates and major member companies, the Federation of Korean Industries released a policy recommendation July 19 that called for the improvement of overall corporate reform-related systems such as the Commercial Law, Fair Trade Law, Labor Law and workout programs.

Noting that the conditions for the establishment of a holding company, which requires a debt ratio of below 100% and equity shares in affiliated firms of less than 50% according to the Fair Trade Law, are much more stringent than those of the U.S., Germany and Japan, the FKI stressed that these terms should be eased.