"Gov"t Should Intervene in Chaebol"s Big Deal"

The Korea Institute for Industrial Economics and Trade(KIET) argued that the 'Big Deal' needs the government's intervention.
The proxy war being fought over the 'Big Deal' between pro-government institutes and pro-chaebol institutes is heating up. At the end of October, six pro-chaebol institutes jointly criticized the government's policy regarding the 'Big Deal'.
KIET argued, on November 26, in favor of the government's intervention in the 'Big Deal'.
KIET indicated that the vastness and national impact of major industries is far too much to entrust solely to the business world and the side effects of the government's intervention are expected to be low.
According to KIET, the production capacity of major industries including motor, oil refinery, generation facility, train building, and semiconductors reached twice that of consumption. The capacity of the auto industry is 4.2 million units whereas the consumption is 2.1 million units in total imports and exports combined.
KIET refuted the logic of the pro-chaebol institutes by arguing that overcapacity is a very serious concern world wide. Solutions to the overcapacity problem are expected to be difficult with serious ramifications to the nation's export-oriented economy. It, thus, argues that the Big Deal is necessary so that viable companies can combine production and solve the overcapacity problem that occurs when there are too many players in the same field. KIET stated that the chaebols' self-controlled restructuring and 'Big Deal' has a very high chance of failing.