Government’s Policies Aimed at Reducing Business Activities.

On May 7, the executive vice chairmen of the nation’s five leading business associations, including the Federation of Korean Industries (FKI) and the Korean Employers Federation (KEF) revealed that they oppose the revised bill on the Fair Trade Law whose main contents include the reduction of voting rights on the part of financial companies, the reintroduction of investigative rights of bank accounts by the Korea Fair Trade Commission, and the maintenance of the total investment restriction system.

FKI Executive Vice Chairman Hyun Myung-kwan and KEF standing Vice Chairman Kim Young-bae held a meeting at a hotel in Seoul today and announced their stance on the economic reform policies of the government and the labor union’s demand to participate in management.

Hyun and Kim expressed their concerns in saying that “the top priority of the government should be the creation of jobs but instead, seems to be restricting business activity lately.”

Hyun and Kim believe that the labor union’s demand for its participation in management infringes on the rights of management which are essential to capitalism, and insist that their demands should be withdrawn since they might shrink management activities enough to lose momentum to restore the economy.”

Hyun and Kim also said that five economic organizations would cooperate to overcome the obstacles and that they are planning to hold a meeting with the government, political parties, and the National Assembly.

Vice Chairman Hyun projects that reform policies that hinder company investment lack the rationality and validity with consideration to the economic development, saying, “The reform should be a means of improving the economy. However, I’m frustrated with the reality (of the situation).”

Five economic vice chairmen groups agreed to meet at the end of this month or early next month to discuss specific plans about the cases discussed today.

The director of the Fair Trade Commission Lee Dong-kyu said, “reducing the voting rights of the financially affiliated companies was confirmed through the agreement procedures and discussion of concerned departments, and it is occurring in accordance with our policy, which is also reflected in our three-year road map for market reform.” Also, Education Publicity Chief Lee Su-bong of the Korean Confederation of Trade Union states that “the assertions of the financial circles are merely anachronistic,” saying, “Workers’ participation in the management helps enhance the responsibility and competitiveness of enterprises.”

Wi-Yong Jung Chi-Young Shin viyonz@donga.com higgledy@donga.com