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“The Government Suppresses Business with Old Data”

Posted December. 10, 2004 22:41,   


“The government is repressing the current industries with old information,” said President of the Korea Chamber of Commerce and Industry Park Yong-sung, who is known as “Mr. Bitter Tongue” of the business industry. He attended a breakfast meeting (hosted by the chamber) at the Millennium Seoul Hilton Hotel in Namdaemun-ro, Jung-gu and said, “The government analyzes three-to-six-month old information, and that’s why it often comes up with unrealistic policies for the industries.”

This remark was said after Director of Korea Development Institute (KDI) Kim Jung-su pointed out from his speech for the meeting, “The government does not know the reality of the economy, but only knows the economic trend of three, four, or even five months ago.”

“We thought that the government knows best about the current economic situation as it has access to all the information about each corporation. However, Kim confessed that it is not the case,” said Park. He also asked Kim, “Please consider the situation of businesses when you submit proposals to the government.”

Kim also argued that investment in facilities decreased only among small- and mid-sized companies, unlike conglomerates, after the inauguration of the current administration. About this remark, Park refuted, “Although the total investment of conglomerates in facilities has risen, we should note that most of them except Samsung and LG Electronics have reduced investment in facilities.”

He also said, “The economic growth rate can be raised in the short term, but it cannot keep increasing without the growth potential being lifted as well. It is the same as a marathon runner unable to run a race if he fails to pace himself.”

He added “At present, the growth potential of Korea is 5% at best”, and “We should focus on strengthening the potential to 5.5% or 6%, not spuring on to immediate growth rate.”

Keuk-In Bae bae2150@donga.com