Gov't orders big businesses to step up restructuring

The government and business circle have agreed that corporations will voluntarily evaluate the implementation of five major principles of corporate restructuring and submit the result to the government by the end of September.

Also, the business circle has decided to actively accommodate ways to nurture components industries and to reduce semi-taxes, as well as relax various economic and social restrictions.

Minister of Finance and Economy Jin Nyum and four other economic ministers held a meeting with representatives of five economic organizations, including Federation of Korean Industries Chairman Kim Kak-Choong, on August 21 at the Korea Federation of Banks building in Myongdong in Seoul, as the first meeting since the birth of the government¡¯s new economic team.

Officials at the Ministry of Finance and Economy said that both sides studied ways to pursue corporate restructuring on a gradual basis along with improvement in the relationship between government and business.

He also said that the government would push forward corporate reform after considering the reports on the restructuring progress and the remaining problems to be resolved submitted by the business circle.

Park Won-Jae parkwj@donga.com