Small Companies Want to Defer Introduction of Five-day Workweek

On the New Year’s Eve, President-elect Roh met with heads of the nation’s largest economic organizations, including the Federation of Korean Industries (FKI). At the meeting, he said that the new government’s policy toward chaebol and corporate restructuring policy would be based on the current government’s. But for parts in restructuring found to be problematic, there will be some complements, he added.

At a meeting at the Government Complex Annex in central Seoul on that day, he said, "There will not be surprising measures in order to maintain consistency in economic policy. When policy should be changed inevitably, he will review the validity of the change seriously."

In particular he said that his new government would make efforts to minimize labor-management dispute and accompanying social costs, taking a neutral stance. He urged businesses to accept changes.

He also reiterated that businesses felt easy in this presidential election, calling on them to help the government make reasonable changes even in areas other than politics.

Earlier that day at a press meeting, the President-elect said, "If businesses compete each other in a fair way in a fair market system, the new government will support business for technological innovation and not apply any restraints. But the new government will not tolerate either trickery or foul play in business activities."

Meanwhile, meeting with the President-elect, the heads of the major economic organizations asked for the government’s aggressive backing, saying that amid difficult economic situations at home and abroad, businesses are increasing investment in facilities.

The core of national competitiveness is science and technology, so either the government or businesses should raise investment in this area, not expecting short-term results, the head of the FKI, Kim Kak-jung, asserted. Korea Employers Federation of Small Business chairman Kim Chang-sung promised to cooperate on pending bills at the National Assembly if the new government allows small- and medium-sized companies to have greater discretion in introducing the five-day workweek and give support to businesses in terms of finance and taxation.

The head of the Korea Federation of Small Business, Kim Young-soo, said that the most serious problem facing with small companies is the shortage of manpower, and he asked Roh to improve the system on foreign employees and enact a special law on supporting small businesses in terms of human resources at an early date.

Kim jae-chul, the chairman of the International Trade Association requested Roh to ease an assortment of rules to the level of advanced nations in order to attract more foreign companies.

Korea Chamber of Commerce park Young-sung asserted the need to give an incentive to high schools located in the country to prevent the concentration of population in Seoul and its vicinity.

In addition, those chairmen reached agreement on the fact that the new government should solve pending issues in a natural way like flowing water, instead of taking drastic measures, which could make waves. They also showed their intention to cooperate on fine-tuning between government and business.

Yeon-Su Shin Young-Hae Choi ysshin@donga.com yhchoi65@donga.com