The Korea Economic Research Institute’s New Chairman

“A blind trust in the role of the government, socialism, and unreasonable demands from interest groups all hamper the development of a market economy. In the face of considerable anti-market atmosphere in our society, I’ll do my best to spread our market economy,” said Kim Jong-seok, the new chairman of the Korea Economic Research Institute (KERI).

Immediately after taking office as chairman, the 52-year-old doctor in economics said in an interview with the Dong-A Ilbo, “To enhance efficiency in the Korean economy, KERI will offer scientific analyses and alternatives.”

He is a professor of business administration at Hongik University and was recently appointed the seventh chairman of KERI by Cho Seok-rae, chairman of the Federation of Korean Industries.

Kim pointed out the “mistrust in the role of market and blind faith in the role of the government” as the biggest problems of the Roh Moo-hyun administration’s economic policy. Such policies have undermined vitality of the country’s economy and business environment.

“If KERI’s end goal should be the ‘establishment of a market economy,’ the way to achieve this goal is to increase the flexibility of the economy. To resolve inefficiency, including the rigid labor market, regulations on the Seoul Metropolitan area, and the investment cap, the economy must restore its flexibility.”

Kim said, “KERI and the administration share the goal of growing the national economy. The difference between them is just the methodology,” adding that offering and discussing different opinions to find the best way is good for economic growth.

He also stressed that he would speak up about corporations who threaten the healthy development of Korea’s market economy.

“A considerable number of corporations have been punished for violations of law in relation to accounting fraud and political funding. Corporations must not spark public hostility and mistrust toward businesses and the free market economy.”

He said, “I told Chairman Cho about this, and he shared my belief.” Cho met with Kim on April 6 and said, “I asked a few business leaders to recommend a candidate for KERI chairman, and all of them recommended Professor Kim. Please take the helm of KERI, whose activities are stagnant these days, and present various policies for the growth of Korea’s economy.”

Starting his chairmanship yesterday, he said to researchers at KERI, “Feel free to express your opinions at outside seminars and discussions,” emphasizing, “KERI needs ‘star researchers.’”

“KERI should be able to actively express its opinions to the government and the public, rather than just publishing research reports. My goal is to build a private research institute which is on par with the KDI, the best state research institute, within my two-year term.”

Kim is one of major theorists of the “New Right Movement,” which is considered to have transformed the ideological landscape in Korean society. He is a member of board of directors at the New Right Foundation, providing the framework for the economic theory of the movement.

Graduating from Kyunggi High School and Seoul National University as an economics major, he earned his master’s and doctorate degrees at Princeton University. He is a former researcher at the KDI and current professor at Hongik University. He also jointly translated with his brother-in-law, Professor Kim Kyung-hwan at Sogang University, Gregory Mankiw’s book “Principles of Economics,” which is popular not only among college students but also among the general public.

higgledy@donga.com sanjuck@donga.com