AMCHAM chief emphasizes credibility for recovery of Korean economy

The Korea Stock Price Index (KOSPI) was in the 700-point range ten years ago, but it fell to the 500-point range this year. This did not mean that the Korean economy had deteriorated as much, but it did mean that the credibility of the Korean economy and companies had, the chief of the American Chamber of Commerce (AMCHAM) in Korea said Thursday.

Jeffrey Jones, president of AMCHAM, made the remarks at a lecture given at the Hotel Lotte in central Seoul under the auspices of the World Economic Research Institute. During the lecture, he emphasized that regaining credibility is more important than anything else for the recovery of the Korean economy and stock market, currently in serious difficulties. The president said that Koreans were now hampering the flow of funds by refraining from investments in the stock market, and this was because they did not trust companies. Under such circumstances, the recovery of credibility would be more effective in boosting the market than any other pump-priming policies, he added.

To regain credibility, Jones stressed, transparent business management and the spirit of observance of the law were necessary. Particularly, president Jones advised Koreans to regard their country as an advanced one, not a developing one. When a nation regarded itself as an advanced one, it would behave that way, he said.

Koo Ja-Ryong bonhong@donga.com