Gov¡¯t, biz circles agree to jointly strive to raise competitiveness

The government and industrial circles have agreed to hold a joint conference to evaluate national competitiveness by the end of next month for the first time. They explained that the meeting is aimed at monitoring real economic trends and looking for ways to better cope with possible changes.

They also decided to establish a working-level team consisting of government officials and industry representatives to discuss matters related to four major policy projects: the completion of industrial restructuring as soon as possible, the reform of regulations, the reduction of quasi-taxes and the fostering of the parts and material industries.

These and other decisions were made Wednesday at a meeting of government officials and industry representatives held at the Korea Federation of Banks Building in Myongdong, central Seoul. Participants in the meeting included Finance and Economy Minister Jin Nyum and other economy-related ministers, as well as Kim Kak-Choong, chairman of the Federation of Korean Industries.

At the meeting, both parties decided to propose holding the first conference to evaluate national competitiveness, which will be presided over by President Kim Dae-Jung, at the end of November in order to look for ways to boost competitiveness.

In return, industry representatives promised to wrap up corporate restructuring as soon as possible and arrange measures to raise the competitiveness of each industry through voluntary arbitration in business areas with potential problems such as excessive capacity. They also pledged to establish ethics committees within boards of directors and make efforts to upgrade corporate managerial transparency and governance structure to encourage responsible management activities. In order to support these efforts by industrial circles systematically, the representatives of five leading economic organizations recommended complementary policy projects in four fields such as corporate restructuring and reforms of quasi-taxes.

In connection with the second round of corporate restructuring, which is stirring up a controversy, industrial circles expressed their opposition to the proposals for collective voting rights for small shareholders and a class action suit system, claiming that the systems would diminish corporate will for business management. In addition, they recommended that the government enact laws to reduce various quasi-taxes imposed on companies and rapidly develop the parts and material industries.

They also called for the easing of various legal restrictions on working conditions so as to reduce the burden on companies, which is expected to increase after the five-day work week system is implemented. They argued that the flexibility of labor should be raised through the activation of a worker dispatch system.