Gov't wrong to interfere in inter-Korean projects

It is incomprehensible that the government intends to saddle Hyundai Motor with its inter-Korean projects. Such a government move clearly runs counter to its policy of not asking or putting pressure on specific enterprises in this area and only encouraging self-regulated participation in North Korean projects.

It is hard to understand why the government has to promote inter-Korean projects using this sort of incongruous method. If the government has any specific reason for giving aid to the North, even in breach of capitalist principles, it ought to make it public.

It is generally understood that one of the primary reasons that Hyundai Group was plunged into a financial crunch was its reckless fund injection into its North Korean projects. Nonetheless, the government unreasonably moved to impose financially burdensome inter-Korean programs on the private firm, while exerting little effort to lower the exorbitant entry fees to Mt. Kumgang. Had the government offered a certain price in exchange for Hyundai Motor`s participation in the inter-Korean projects, it is assumed that the same government favor must have been accorded to the Hyundai Asan Corporation, the main promoter of the inter-Korean businesses. This is the reason why the government is under scrutiny for giving irregular, preferential financial support to Hyundai Electronics Industries and Hyundai Engineering and Construction, in defiance of rising criticism at home and abroad.

Hyundai Motor holds considerable foreigners` equity. Hence, if Hyundai Motor knuckles under to any government pressure to undertake North Korean programs, the situation will be complicated. Foreign investors` trust in the Korean government and the Hyundai auto firm would plummet and the nation`s economy would face a crisis with the prospective nonviability of the nation`s largest car maker. The raison d`etre of any enterprise is to make profits. The decisions on new businesses should be made on the basis of feasibility, and actual undertaking of any projects should be determined on the basis of the enterprises` own analysis of its profitability. From this standpoint, Hyundai Motor`s rejection of the alleged government offer to take over the North Korean projects is quite natural and even courageous. The Hyundai car maker is encouraged to grapple with any contingency with firm conviction. At the same time, all other enterprises may well learn a lesson from the example set by Hyundai Motor, whenever they face this kind of government pressure.

Whatever projects the government may promote in the name of the people, it should not undertake them in this manner. It is imperative for the government to analyze the causes of the ruptures in the inter-Korean programs and work out rational countermeasures. The general public will never concur on any government tricks that run against market principles or any irregular policy measures.