FKI Forum Takes Up Topic on Economic Recovery
- Business circles taking the initiative in nurturing new growth engines

The Federation of Korean Industries(FKI) held its 8th New Year CEO Forum Jan.12-14 at the Coex InterContinental Hotel in downtown Seoul. Among the speakers at the event included Deputy Prime Minister and Finance and Economy Minister Lee Hun-jai, Woori Bank President Whang Young-ki, Lee Yong-kyung, president of KT, Kang Chang-oh, president of POSCO, among others.
Debates followed after each speaker finished speeches.
FKI Chairman Kang Shin-ho, in his opening remark at the forum, said the business community will once again play a major role in creating the second miracle in the economy' "Let's not complain about how hard to do business, but talk about hope; enterprises will take the lead," he stressed. He said for the economy to recover, business firms would have make investments and there are places for investment if look hard enough so that jobs may be created under positive investment.
He said President Roh Moo-hyun also said he will do all he can for the economy to recover and both opposition and ruling parties also pledged to do their best for the economy. The government, business and citizens all major players in the economy should get together to make an all-out effort to make the economy to recover its growth. He went on to say that nothing can't be overcome if every one pitches in.
Deputy Prime Minister and Finance and Economy Minister Lee Hun-jai in his keynote speech entitled, "The Direction of the Government Economic Policies to Spur Economic Growth," said he expected the Fair Trade Law will be revised in a market-friendly way. He said the uncertainty in doing business would be resolved if labor and management would agree to take care of their problems according to law and principles and the government comes up with a rational guideline for the overall investment system.He recalled that various problems were solved last year, while others were solidified, despite many problems last year. He called on the business community to go all-out for business as the government is set to give all kinds of support including lifting a hunk of regulations so that business investment in technology and advancement overseas would be spurred.
As for economic outlook for this year, the deputy prime minister said externally the possibility for a further drop in the value of U.S. dollar looks slim and exports are likely to expand 10 percent this year. He went on to say that the construction market would stay about the same as last year this year with its demand totaling 85 trillion won. In order to boost the market, the government will employ policies to invigorate the construction of rental houses under a comprehensive investment plan for business firms. Mortgage loans will be expanded this year. Saying that he has been a positive thinker, top economic official in the country said he is aware of the criticism that he has been pronouncing positive policies only. He went on to say that most firms have seen their finances improved from the financial crisis of 1998 and they have a little room to absorb risks. The problems associated with corporate governance have now been improved being looked at from the side of systems with the amendment of the Fair Trade Law last year and now business firms would have to solve the rest of the problems in dialogue with the market, he emphasized.
In the meantime, Jwa Seung-hee, director of the Korea Economic Institute, said both well going business firms and people should be lauded so that the economy might do well.
Economic and social progress of a country are in the hands of people doing well. This is an eternal truth and if it is violated society would not do well, he stressed. He said people say that consumption is being contracted, but it is the people with enough money to spend, who increases consumption and investment. If they are being looked upon as a white elephant our society would not turn very well. It would need the President to say that successful people and businesses are respectful to brighten up the society, he said. nw