[Reporter`s View] Government-Industry Different Eyes

Recently, the Financial Supervisory Service announced that the net profit of bank industry increased three times in the first half of this year compared to the same period of last year. A FSS official praised the government, saying ``this is the good evidence of the bank industry restructuring by the government. The management of the banks is finally normalized.``

Prof. Kwon Young-Jun, the chairperson of the finance reform committee of the Citizens Coalition for Economic Justice, had a different idea. ``Even when the interest income is only 5 percent of the total fund 80 trillion, the interest income of the public funds poured to the bank industry will exceed 4 trillion won. If the banks did not make profits after receiving the tremendous support equal to the National annual budget, that would be more unusual.

Since the banks make their profits very easily by decreasing the savings interest and maintaining their loan interest, the net profits cannot be understood in relation with the competitiveness strengthening.

Responding to the report that a CEO of a medium business moved all this new facilities to China due to the heavy tax, a high official of the government said, ``the CEO might misunderstand. The government is working very hard for the small-medium business.`` However, the CEO insisted that his CEO friends also has experienced such cases.``

As the economic stagnation continues, the viewpoints of the government and private organizations increasingly differs from each other. The government and the industrial side attribute the responsibility of the stagnated economic situation to others.

When the Chairperson of the Korean Economic Research Institute, Jwa Sung-Hee, remonstrated that ``the government itself has be reformed,`` the leading members of the business sector welcomed it as `a straightforward remark.` Finally, the inauguration members of the current administration, JungKyonghoe-a meeting for (dae-jung) people` economy research- stood forward to criticize the incumbent Minister. Of course, the government officials might be mortified at the misunderstanding of their anxiety and loyalty. The more the gaps of the viewpoint between the government and the private organizations, the more the economy will stumble.

Park Won-Jae parkwj@donga.com