Economic Growth Depends on 
Management of 3 Weak Industrial Sectors

Rep. Chung Duck-koo, of the Uri Party, said the growth of the Korean economy will hinge on how the nation manages its three weak industrial sectors - agriculture industry, small- and medium-sized manufacturing industry and small self-employed businesses and conventional distribution markets.
Rep. Chung, a member of the National Assembly Finance and Economy Committee, made the remark while delivering a lecture during a meeting with businessmen, organized by the Korea Chamber of Commerce and Industry (KCCI) at the Ritz-Carlton Seoul under the theme "Corporate Governance Crisis and the Four Pumps of the Korean Economy" on June 24.
"The Korean economy is placed under the influence of four pumps: growth-dominated industries, three weak industrial sectors (agricultural, small- and medium-sized manufacturing and small self-employed business and conventional distribution markets), global economic cycle and economic sentiment," he said.
"Even though the three week industrial sectors have posed a hindrance to the national economy? smooth voyage, they have received favors in the political perspective, thus having a negative impact on their competitiveness," Rep. Chung said.
Out of the four pumps, the global economic cycle and economic sentiment play the same roles as the air and environment that surround the industrial arena, and the growth-dominated industries and the three weak industrial sectors serve as growth engines, said Rep. Chung, adding that the problem is that the industrial fields behind the driving force of the economy are overwhelmed by the seriousness of the three weak industrial sectors.
The domestic economy depends on how well the weak industrial sectors are managed, and Korea cannot join the ranks of advanced countries unless it solves the problems wisely, he said.
Commenting on the collapse of Daewoo Business Group, Rep. Chung, who served as the then-minister of commerce, industry and energy, said Daewoo was destined to a doom due to a failure of crisis management even though all the policymakers talked about the danger of the business group.

Stress for Economic Cooperation
between Korea and Sri Lanka

Visiting Sri Lankan Prime Minister Mahinda Rajapaks called for Korea and Sri Lanka to make continuous efforts to expedite trade and investments, saying that the Korea-Sri Lanka, Sri Lanka-Korea Economic Cooperation Committees have played a pivotal role in invigorating economic cooperation of the private sector. He delivered a keynote speech during the 12th Joint Meeting of the Korea-Sri Lanka, Sri Lanka-Korea Economic Cooperation Committees at the Seoul Plaza Hotel on May 26.
Kim Sang-yeol, president-CEO of KCCI, said in his speech during the luncheon meeting with the Sri Lankan prime minister that bilateral exchanges have gotten a boost since the establishment of diplomatic ties between the two countries in 1977. In particular, Kim stressed the significance of the economic cooperation committees between the two countries; saying that the trade volume between Korea and Sri Lanka surged more than six times thanks to improved economic exchanges following the inauguration of the economic cooperation committees.
M.H.M. Faizer, director-general of the Sri Lankan Investment Office, spoke about his country's easing of regulations and incentives in the ICT sector. He urged the Korean IT firms to proactively invest into the IT sector of Sri Lanka.
Lee Jae-min, president of the Overseas Economic Research Institute at Export-Import Bank of Korea, said it is important for Sri Lanka to offer more favorable investment incentives than China, which takes a too high portion of Korean investments into foreign countries, in a bid to boost Korean companies?investments into Sri Lanka.

Korean-French Trade Volume
Surge to Close to $5 billion

Kim Young-tae, chairman of the International Committee at the KCCI, said Korea and France have maintained amicable bilateral relationships since the resumption of diplomatic ties between the two countries in 1949, and President Roh Moo-hyun's state visit to France last December provided an opportunity for bilateral ties to make a tremendous stride. Bilateral trade volume approached the $5 billion mark and about 170 French companies have advanced to Korea, Kim said in his speech to a meeting presided over by the KCCI International Committee on May 26.
Philippe Lee, president of French-Korea Chamber of Commerce, said despite a short period of trade and investments between Korea and France, bilateral trade volumes have increased considerably as exports of Korea electronic products are on the rise. He noted that it is encouraging to see Korean-made films and electronics products gaining recognition, and bilateral ties between Korea and France will further the development of the IT and cultural product sectors if they understand and accept each other's culture. nw

Rep. Chung, a member of the National Assembly Finance and Economy Committee, speaks during a meeting with businessmen, organized by the Korea Chamber of Commerce and Industry (KCCI) at the Ritz-Carlton Seoul.