Chaebols Oppose Roh`s Economic Policies

The Federation of Korean Industries has publicly criticized the incoming administration`s "chaebol policies." In addition, the federation voiced its worry that the policies would smother the business activities of the corporations.

At the meeting of its directors held yesterday at the federation`s headquarters, it handed out to its directors copies of its report "Economic Outlook and Agenda for the Year of 2003," which contained the opposition and worry. It also alleged, in the report, that business activities would be discouraged by introduction of the class action suit and strengthening of supervisory directors` authorities, the two main systems the incoming administration is trying to usher in.

In addition, the federation stressed that the current excessive regulations would gnaw at the potential for development by shrinking investment and smothering corporate management.

In the report, the federation refuted each and every policy believed to be introduced by the Roh administration, including introduction of class action suit, comprehensive taxation on inheritance and gift, mandatory notarization of documents made public in the stock market, and restriction on voting power of financial institutes.

It also contended that the incoming administration should overhaul its policies in such a way as to boost fair competition between corporations, rather than to regulate corporations based on size.

It further alleged that transparency in management should be enhanced not through introduction of a new system like class action suit, but through strict enforcement of the existing administrative mechanisms. The federation also voiced its wishes that the mandatory "less than 200%" debt ratio and discriminatory regulations in the Seoul metropolitan area should be abolished.

In the meanwhile, the directors agreed to adopt a resolution in the upcoming convention, which is scheduled for Feb. 7th. It was reported that the resolution would stipulate its commitment to raising the national per capita income to $20,000 by the year of 2007. They also confirmed their dedication to assisting the incoming administration in achieving its No. 1 goal of advancing South Korea to a country playing a central role in East Asia.

Keuk-In Bae bae2150@donga.com