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CFE blasts minority shareholders` movement

Posted March. 04, 2001 17:42,   


The Center for Free Enterprise (CFE), whose members include the Federation of Korean Industries (FKI) and large companies, called for the suspension of the minority shareholders` movement Saturday, saying, ``The efforts of the People`s Solidarity for Participatory Democracy (PSPD) run the risk of undermining the profitability of local enterprises and having a negative impact on the national economy.``

CFE chairman Min Byung-Kyun said in a press conference, ``We recognize that the activities of the PSPD have contributed to enhancing management transparency and bringing an end to the cozy relations between the political and economic spheres. However, considering current economic conditions, it is too early for them to make further far-reaching demands. In view of the fact that civic movements can also have a harmful influence, we ask them to stand down and offer our assurance that we will not neglect our supervisory duties.``

The announcement from the CFE came ahead of general shareholders` meetings at many large enterprises, including Samsung Electronics (Mar. 9) and SK Telecom (Mar. 16). It is thus expected to spark a battle between the CFE and PSPD. CFE vice chairman Kim Jung-Ho said, ``If the minority shareholders` movement disrupts decision-making processes at domestic enterprises and hampers efforts to maximize profitability, shareholders` profits will fall and enterprises will lose their competitiveness.`` The PSPD responded that the CFE`s position was unfounded and that it would continue pushing the minority shareholders` movement.

Park Won-Jae parkwj@donga.com