President-elect Vows Business-Friendly Government

President-elect Lee Myung-bak held a meeting with the chairmen of large conglomerates and vowed to create a "business-friendly" government yesterday. In response to this, the business leaders promised to make efforts to increase their investment next year. This is believed to be a necessary step to revive the Korean economy that is losing its growth momentum after failing to find a future driving engine while being stuck between the two regional powerhouses of China and Japan. The meeting also signals a major shift after the presidential election.

It is significant that the Federation of Korean Industries was the president-elect’s first official visit except for the National Cemetery. This is because the meeting itself was the sign of the determination of the government and business circles to facilitate investment and create jobs.

The Roh Moo-hyun administration also pledged to create a “business-friendly environment,” but it failed. The president-elect cited that the reason for failure was not to abolish core regulations. He has a point. We have also urged the incumbent government to provide feasible measures for the businesses and ease the restrictive regulations to help them enhance their competitiveness.

However, President Roh’s administration turned a blind eye on our demands, discouraged firms from making investment, and even drove them overseas. The results were the perpetuation of low growth, scarcity of employment, and lost momentum for economic growth.

The economy cannot be resolved by economic formula; it depends on the “will to hold on to an economy that makes sense.” What counts is the environment where the business sector is willing to do business. In respect to this, the pledge by the president-elect to build a society where businessmen who create jobs are respected is meaningful.

Of course, “The environment where firms are willing to do business” should accompany the responsibility. Trust in business and business leaders should be based on the law-abiding spirit, transparent governance, and social responsibility of firms. They also should observe the global standard. The new labor-management relationship can only be achieved by spontaneous sacrifices and concessions from the both sides, rather than by the arbitration of the government.

President-elect Lee declared that, “The connection between political and business circles is gone.” His remark clearly demonstrates his determination that the government and labor should be subject to the nation’s observation. It is reported that the business leaders inspired by Lee’s remark said yesterday that, “All our worries and fears are all gone.” But they should be modest with their newly assigned responsibilities.