Foreign Corporations Express Concern

Foreign corporate managers in Korea are showing concerns about possibility of new government`s hasty reform implementation.

A conference was held by the Dong-a Daily Newspaper on 15th January, which discusses about new government`s economic policies. Participants point out that if the reform speed is not under control, the uncertainty of foreign investors in Korean corporate environment will increase. They also point out that if unpredictable reforms continue, foreign investors will turn their attention to other competing countries such as China.

Especially in regard to reforms by the Presidential Transition Committee concerning the `Jaebal`, participants say that the international market is paying attention to the conflict between the new government and the Jaebals. They emphasize that the image of new government striking the Jaebals over corporate ownership and management clarity issues will not help in heightening the national creditability.

In regard to latest controversy over irregular job wages, foreign corporate managers say it is a very sensitive issue that requires adequate time before implementation. They say that obtaining the flexibility of the labor market is required before discussing the irregular job wages.

“Korea has adequate potentials to become the center of East Asia,” say foreign corporate managers. However they point out that in order to achieve this, recent social issues such as anti-American sentiments must be solved first.

Participants of today`s conference are Tami Overby, Senior vice president of AMCHAM, Joseph Day, Board director of EUCCK, Joe Mannix, Branch manager of United Airline in Korea, Dashaki Nobuya, CEO of Fuji Xeroz-Korea.

Mi-Kyung Jung Hyung-June Park mickey@donga.com lovesong@donga.com