[Editorial] It's time to focus on economy

When it was reported that President Kim Dae-Jung had won the Nobel Peace Prize, many citizens sent congratulatory remarks to him. But they also asked him to focus on saving the nation's economy, which is at a critical point. It clearly proves that how pressing the economic situation is to the nation.

These days, consumer confidence has cooled off, corporate sales have fallen sharply and the stock price index has crashed to the 500-point level. Even large construction companies are on the verge of bankruptcy, while the failures in the sales of Daewoo Motor and Hanbo Steel are squeezing the nation's economy. Some worry that a second financial crisis could come.

Of course, Korea's economic situation is greatly affected by the soaring oil prices and collapse of global stock markets. In fact, the Korean economy is so fragile that it is affected by external factors. It proved that the restructuring that the government has pursued in various sectors since the outbreak of the nation's foreign exchange crisis three years ago has not been successful.

Corporate and financial restructuring were suspended before the general elections last year, so the nation lost a good opportunity to strengthen its economic fundamentals. Also, the government stressed too much its achievements, and the various sectors of society stopped belt tightening and demanded a greater share of the economic pie. These phenomena triggered the nation's current economic unrest.

As the economic situation deteriorates, President Kim proclaimed in June and again in October that he would directly intervene in economic policies. But the reaction of the market is not as before.

We wouldn't agree to any trials to degrade the progress in South-North relations, as well as Kim's earning of the Nobel prize. But it would be difficult to deny the fact that the nation's government has been excessively focused on South-North relations rather than the economy and other domestic issues. Now Kim has won the Nobel prize, and he will be able to concentrate on boosting the nation's economy.

By pursuing corporate and financial restructuring, on which the government has poured 104 trillion won of public money, the government needs to remove the factors that cause instability of the market. For President Kim, completing restructuring of four major sectors of corporations, financial institutions, labor and the public sector is the utmost question that he has to tackle during the second half of his presidency.

The reform works would inevitably follow social pains, but it would be helpful to obtain the national consensus if President Kim takes the initiative in the reform.

We hope that Kim will become a president who also succeeds in internal government to strengthen the structure of corporations and financial institutions and will rebuild the economy on the basis of that.