The World Trade Organization (WTO) delivered its view to the Korean government that disputes among its economic bodies and confusions within its agencies on policy for conglomerates are impeding Korean national competitiveness.
Such a view from the WTO is drawing attention since it comes as agencies of the Korean government are currently voicing different opinions in relation to the policy for conglomerates, and as conflicts between the government and the business sector have escalated.
The WTO representative body, visiting Korea to examine its overall trade policy, stated this view to the Free Trade Commission (FTC) on May 10 and to the Federation of Korean Industries (FKI) on May 11.
During its visit to the FTC on May 10, the WTO representatives mentioned the 2004 World Competitiveness Yearbook released early this year by the International Institute for Management Development in Switzerland, and affirmed that Korean government policy is responsible for the countrys lack of competitiveness in some fields where Korea ranked at the bottom.
After meeting the WTO representatives, Lee Byung-Joo, the FTCs policy director, announced that they pointed out the differences among the policy directions of the agencies, saying, The FTC has reinforced the regulations that impede business investment by putting limits on the total amount of contributions, while the Ministry of Finance and Economy has imposed a policy to activate investment through private equity funds.
After that, the WTO representatives asked the FTCs opinion on the inconsistent government policy, which they believe is a factor hampering national competitiveness, and the FTC explained that the current policy for conglomerates is to ensure transparent and fair economic orders.
On May 11, the WTO representative body visited the FKI to listen to the opinion of the business sector on the regulations of the government agencies, including the FTC. The FKI members in charge of the real practices answered that the FTCs regulations might prevent the conglomerates from investing more.
On this visit, WTO representatives were members responsible for drawing up the organizations Trade Policy ReviewKorean Report, which has been published by the WTO every four years. They will finish the report by late June, reflect the views from the member country, and submit it to the Trade Policy ReviewRepublic of Korea which will be held this September.
Since May 6, the WTO representatives, headed by Clemens Boonekamp, director of the WTO Trade Policies Review Division, have visited Ministry of Finance and Economy, Financial Supervisory Commission, Ministry of Commerce, Industry and Energy, Bank of Korea, and Korea Development Institute, and their official agenda will be closed on May 12.