Two or Three More New Communities will be Constructed in Metropolitan Areas

The government decided to construct two or three new cities additionally in metropolitan areas and will select proposed sites in the first half of the year.

Also, the government determined to specify the prospect of economic growth rate to 5% and improve the management environment for an investment activation of the company.

The government had the meeting of the economic ministers participated by Jeon Yun-Cheol, Deputy prime minister and minister of finance & economy under the superintendence of the president, Kim Dae-Jung in Cheong Wa Dae office of the president on January 8. Then, it announced `2003 economic operation direction`.

In the meeting, economic ministers decided to construct two or three new cities additionally in metropolitan areas and build the housing of 500000 households to disperse the concentrated housing demand in Seoul and a stabilization of the property price.

Also, in terms of the prospects of major economic index, the government decided △ economic growth rate at 5%, △ the consumer price increase at 3%, △employment rate at 3% and △profit in balance of current account at 2 billion won ∼3 billion won.

In relation to it, Bak Byeong-Won, director of economic policy bureau, the ministry of finance & economy explained, “the economic growth prospect of 7% is just a goal of medium/long term of the next government with a creation of 500,000 jobs each year. The growth of 5% is the prospect estimated after discussed with the presidential transition committee.”

The government will not use a stimulant plan which a side effect is worried such as the increase of household debt and the property price. Instead of it, the government decided to focus on increasing a potential growth rate by increasing the R&D investment and an active investment of the company.

It plans to supply lands required for the development without trouble through `Advance Plan-Post Development System` to facilitate the investment activities of the company.

It also plans to revise the labor standard law to establish the labor market system based on the international standard, such as an abolition of monthly leave and paid menstruation leave and the expansion of flexible working hours.

However, the government will establish a group lawsuit law to increase a transparency and fairness of the company, and will strengthen a periodic investigation for mutual investment between affiliates of large company and a prohibition of debt guarantee.

The government determined to complete the disposal process of insolvent companies such as Hanbo Steel and Hynix rapidly, and to improve the policy to settle a restructuring system.

The government decided to actively examine FTA contracting of △Korea –Japan, △Korea-Singapore, △Korea -China –Japan, except Chile according to a tendency of the global FTA expansion.

Kwang-Hyun Kim kkh@donga.com