Foreign companies in Seoul call for coherent restructuring

Foreign companies in Korea are calling for pro-active restructuring, liberalization of regulations and coherent policymaking from the Korean government.

The Korea International Business Council (KIBC), comprised of the Korea Chamber of Commerce and Industry (KCCI) and 14 foreign chambers of commerce, held a ¡®Seminar on the Korean Economy and Business Environment as Seen by Foreign Companies in Korea.¡¯

At the seminar, participants said that for the stable growth of the Korean economy, reform and restructuring of the four main sectors -- corporate, finance, public and labor -- was essential.

Jacques Beyssade, president of the European Union Chamber of Commerce in Korea, said restructuring of the corporate sector was imperative as most Korean companies are managed inefficiently. Unemployment and the injection of public funds are bound to increase, but restructuring will lead to a more stable financial system, profit-creation for shareholders, and higher corporate profitability, he said.

Morishima Hidekazu, deputy chairman of the Seoul-Japan Club, said that although the Korean government and corporate sector have made active efforts over the past two years to promote foreign investment, there are still many issues to be resolved. He cited in particular such things as the unstable labor market and, noting that Korea and Japan do not have a free trade pact, called for the countries of the Far East region to establish such agreements.