“Don`t Deal with Economy with Political Logic”

The economic circle strongly expressed its worries about possible distortion of the economic rules by the political interests before the up-coming local government elections and the Presidential election this year. The economic circle warns that the pork-barreling policies of the political circle for votes may deter the investment motivation and eventually make inactive of the market that just turned to the stage of recovery.

The economic policy committee of The Federation of Korean Industries (chairperson Sohn Seung-Gil, CEO and President of SK Group) invited Park Jong-Woo, the chairperson of the policy making committee of the New Millennium Democratic Party, and delivered the requests of the economic circle including consistent economic policy, elimination of the pork-barreling policy, and improvement of the economic environment.

FKI requested for "the continuous enforcement of the current policies of the stable interests and the early spending of the national budget until the export and investment is recovered lest some policies contradicting to the economic principles might arise by the magnified voices of the interest groups before the elections."

FKI also asked for the reconsideration of the class action lawsuit related with the securities that will be introduced from April this year and for the adjustment of the economic policies to accelerate the competition among the businesses by the market principle, for example, readjustment of the large conglomerate designation and restriction of the total investment.

FKI is also planning to declare at the board meeting that the economy should be deterred by the confusion of the economic policies during the election period.

With regard to the recent move to revise the labor related laws in the National Assembly, Korea Employers Federation urged to stop the legislation, criticizing that it is "a dangerous idea to drive the management and labor relationship to the worst situation."

Some lawmakers from the labor side are planning to revise the labor law to abolish the administrative direction of the Labor Committee when the negotiation comes to a deadlock, to introduce an emergency performance order system for those who are fighting against the validity of lay-off, and to introduce the honorary labor supervisor system.

However, KEF argued that "such legislation may increase the management-labor conflict in the industrial sites. The political circle must not lose its anchor for begging votes of the laborers."

Kim Seok-Joong, executive director of KEF, said that the business circle is worrying that "the political candidates may attack corporations to draw the attractions from the various interest groups before the elections."

Won-Jae Park parkwj@donga.com · Dong-Won Kim daviskim@donga.com