Be flexible on sale price for Daewoo Motors: Jones

Jeffrey Jones, chairman of the American Chamber of Commerce, said that it would be better for Korea to hand over Daewoo Motors to General Motors for free if it would mean normalizing the ailing automaker`s operations.

While announcing AmCham`s annual trade report at the Hilton Hotel in Seoul, Jones said the government shouldn`t stick to its price at a time when Daewoo Motors` asset value is dropping by about 200 million dollars a month.

He also warned in AmCham`s recommendation to improve Korea`s business environment that the nation would face strong pressure from the United States not only in auto sector but in many other industrial areas if the Korean government does not drastically open the domestic auto market.

▽Opening of auto market is vital

The AmCham report pointed out that Korea sells about 550,000 cars in the United States and imports only about 1,200, saying that this situation cannot be

sustained. He said that Korea`s import duty on cars is 8%, which is far higher tha 2.5% in the United States.

The report indicated that it is important for Korea to enhance transparency in corporate management, saying the main problem with the Korean economy is

that even the financial statistics released by companies listed on the Korea Stock Exchange are untrustworthy.

▽Korea Development Bank`s acquisition of corporate bonds `inevitable`

The report commented that the purchase of corporate bonds by the Korea Development Bank was "inevitable" to avoid chaos of the financial market. However, it

wouldn`t be helpful for Korea`s economic structure if such a measure lasts long, it pointed out.

The AmCham report also expressed the desirability of granting `No Visa` status to Korea, saying that Korea is not included in the list of 29 countries whose

citizens do not require visas to visit the U.S.

Johns said that AmCham is now in contact with the North Korean Representative in New York on forming an investment group to visit North Korea. He added that

AmCham would also consider working together with South Korean companies on business opportunities in North Korea.

Koo Ja-Ryong bonhong@donga.com