President Defends Investment Ceilings

In regard to deregulation on the corporate investment ceiling, President Roh said on December 28, “The current policy is the result of the government’s discussions on corporate governance and are appropriately balanced.”

That is what President Roh said at the closing of the briefing on coexistence and cooperation between conglomerates and SMEs held at Cheong Wa Dae according to Yoon Dae-hee, presidential secretary for the economy.

The president’s remark can be interpreted that he dismissed the request from the businesses to lift the current investment ceiling.

Secretary Yoon said, “The president emphasized that the current policy is the result of a lot of discussions within the government cabinet and ministries. He meant when we look at corporate governance and transparency in business management, the policy seems to be on the right track.”

President Roh also said in regard to the strengthening won during a gathering with 4 major conglomerate leaders, “We will make efforts within the whole framework of running the economy and we need to alleviate upward pressure of won by capital transactions that channel domestic liquidity into the overseas market. To that end, we are reviewing measures to facilitate overseas investment and enter into foreign markets.”

A Cheong Wa Dae official said in this regard, “Government agencies are reviewing measures to lift institutional barriers interfering with companies’ attempts to make inroads into foreign markets and provide them with useful information to help them enter overseas markets. We will see concrete policies by next January.”

Participants of the gathering were Lee Kun-hee, chairman of Samsung Group, Chung Mong-koo, chairman of Hyundai Motor Group, Koo Bon-moo, chairman of LG Group, Chey Tae-won, chairman of SK Group, Kang Shin-ho, chairman of the Federation of Korean Industries, and Sohn Kyung-shik, chairman of the Korea Chamber of Commerce.

It was the first time that the president met with the 4 chairmen separately since his inauguration.

President Roh asked them to aggressively expand investment and create jobs next year. Cheong Wa Dae said it predicted the 4 conglomerates’ investment will grow by 5.3% to reach 47.9 trillion won.

Chairman Lee Kun-hee said during the gathering, “Business conditions this year have not been favorable due to high oil prices and strengthening won but our company’s concern is not present but future. We are focusing on what we should do to survive 5 to 10 years from now.”

jyw11@donga.com