Go to contents

Movement of Political and Economic World after Election of President

Movement of Political and Economic World after Election of President

Posted December. 25, 2002 22:50,   


▽ Movement of Company 〓 A succeeding structure of supreme leaders will be delayed. One official of Hyundai Motor said, “Jeong Eui-Seon, the eldest son of the president Jeong Mong-Gu can hardly be promoted to a vice president directly. There is no reason to confront the new administration which has ill feeling against a bequest of the company.” Also, Lee Jae-Yong, the eldest son of Lee Geon-Hee, president of Samsung group will be promoted to an executive director.

An executive of one group said, “The companies will watch a situation up to 2004 general election”.

Samsung group decided a facility investment of next year for 8.8 trillion won increasing by 35% over the year amid unclear domestic and foreign business. Samsung said, “We will expand the facility investment to activate the business and gain a global competitive advantage of the company.”

LG Group which will publish the management plan for next year, decided the facility investment for over 5.4 trillion won of the year and determined to expand expenses of research and development. The high-ranking official of LG Group explained, “We will plan to increase the investment with a social responsibility of the company.”

▽ Tense economic organization 〓 There is a tension in economic organizations such as the Federation of Korea Industries(FKI), the Korea Chamber of Commerce & Industry(KCCI) and Korea International Trade Association (KITA) that the president`s term is expired at the same time with the launching of the new government. If the new government facilitates a Chaebol reform, group lawsuit system of securities and five-day workweek, they have to undertake the responsibility on behalf of the economic world.

One official of FKI said, “The new president cannot easily adjust opinions between the government and companies. Being candidates, the presidents of the company are highly likely to refuse positively.”

It is forecasted that the president Park Yong-Seong will be reappointed in KCCI which will elect the president in a general meeting in next March, and the president Gim Jae-Cheol will be reappointed in KITA.

▽ Influences on personnel of the company 〓 There was some major personnel shifts in companies after an election of president. There will be many young executives of 40`s in the personnel shifts. One high-ranking official of LG Group said, “the change of generation is a request of an age.” Other official said, “Because advisers of the government are young, the management and executives will be young.”

▽ Weather map of companies 〓 Companies of the industry which has large influence in the government policy are concerned about who will be a minister and how the policy will be changed.

Executives and employees of Hyundai Heavy Industries which large shareholder is Jeong Mong-Jun, are in a depressed atmosphere for the future of the company.

The construction industry has worked hard to take measures expecting that the stability measure of a housing market will be continued. It is forecasted that a transfer of administration city and the construction of Gaeseong complex will not be applied as the favorable factors.

Financial institutions expected that the existing policies such as the sale of Cho Hung Bank will be continued through the next government. Also, the analysis said that there was no big change in a currency policy. The securities companies forecasted that the stock price would be raised after the election of president. However, there is no any effect after the presidential election as the president-elect Roh Moo-Hyun doesn`t present a vision.