Economy is Priority No.1

President-elect Lee will push to revive economy first by invigorating biz investment

President-elect Lee Myung-bak's key policy goal during his administration is to rev up the economic growth rate to 7 percent annually. Kang Man-soo, former vice Finance and Economy Minister, is one of the main economic aides to the incoming president.
Kang, who is the chief of the first economic team of the Presidential Transition Committee, said the president-elect knows better than anyone the need to cut red tape for freer business activities because corporate investment must increase this year to the maximum level possible in order to attain 7 percent economic growth and create new jobs nationwide. He wants to remove the uncertainties blocking vigorous business activities and, furthermore, avoid any politically motivated labor strikes as he did while he was managing Hyundai Construction.
Kang said the president-elect doesn't have any particular views on conglomerates, except that government meddling is not needed if a business firm does well and pays its taxes.
On corporate governance, too, the incoming president doesn't have any particular ideas; he thinks it should be left to businesses, including the issue of generational succession matters. The government will not set any conditions, he said.
During an interview with reporters, the president-elect was quoted as saying that the Samsung special investigation should be concluded as fast as possible as Samsung is the leading conglomerate in the country and plays a huge role in the national economy. If the probe of the conglomerate is prolonged, it may harm the economy, Lee said.
Kang also said the president-elect aims to remove all regulations that aren's found in advanced countries. The elimination of the limit on overall investment and softening the guidelines separating industry and financial funds are based on that principle, he said.
Kang stressed, however, that the incoming government would not give banks to conglomerates. It will steer the conglomerates toward forming a consortium consisting of 10 members, each owning a 10 percent stake, which would certainly prevent a large corporation from turning a bank into its own coffer for funds. "Maybe,"Kang suggested, "the Industrial Bank of Korea can be sold to 100 SMEs."As of now, foreign investors already hold majority stakes in six of the seven largest commercial banks in the country. As it stands, the public is concerned about allowing a bank to come under control of a foreign investor like with the Korea Exchange Bank and Korea First Bank. Kang said there are many ways to ensure that domestic capital holds controlling stakes in domestic banks.
Kang said the president-elect thinks that large business groups represent the country in the international arena like athletes in a sports contest and, therefore, the government can go a long way in supporting them in their competition. The president-elect understands fully the fear large corporations have of being taken over by foreign investors. The next government will introduce a management protection facility from advanced countries to let businesses carry on with their operations in a stable environment.
Kang said, "the president-elect believes that the public sector is too big, but that does not mean he will reduce the number of public servants. That's not his style. He will give them other jobs." nw

Chief Kang Man-soo of the First Economic Team of the Presidential Transition Committee.