FKI int¡¯l advisory group calls for thorough reform

A group of foreign scholars and economic experts called on the South Korean government Wednesday to push ahead more quickly and thoroughly with restructuring in the corporate, financial and labor sectors to ensure sustained growth in the nation¡¯s economy. They are members of the International Advisory Group of the Federation of Korean Industries (FKI).

The FKI¡¯s international advisors, including Maurice Strong, special advisor to UN secretary-general Kofi Annan, were of the opinion that Korea has a long way to go in its retooling efforts, but that it can overcome various difficulties through speedier and more comprehensive reforms. The group was speaking in a press conference after attending the Seoul Economic Forum at the Shilla Hotel in downtown Seoul.

Former German economic minister Otto Graf Lambsdorff stressed that the government must convince unionized workers of the unavoidability of layoffs and wage freezes in the course of restructuring.

Citibank vice chairman Onno Ruding said the government should make bold decisions to keep active firms alive and liquidate nonviable ones, arguing that delays in disposing of insolvent firms like Daewoo would bring about more serious ill effects on the national economy.