Korean Economic Restructuring Still Faces Crucial Hurdles

Korea's economic restructuring, despite having achieved a good deal already, faces some crucially important hurdles in the near future.
The reforms intended for Korea's major conglomerates, chaebols, are moving far too slowly, and government-controlled financing is showing signs of resurfacing again in Korea.
Foreign businessmen and economic analysts are stressing the importance of moving forward with reforms, stating that the Korean economy is entering a new and important stage.
While acknowledging that the Korean economy, especially the recent revival of consumers' confidence, is now showing clear signs of recovery, foreigners are keeping their eyes on whether the government will maintain its resolve to reform government institutions and industries or simply allow the restructuring movement to fade away.
Jeffrey Jones, chairman of AMCHAM, stated that Korean companies are eager to do their best to enlarge profits, and their efforts to maintain financial stability, including decreasing debt-to-equity ratios, is commendable.
He added that without increasing profits, it is impossible for Korean companies to recover their competitive power and expand their capital by way of issuing shares or through foreign investment.
Andrew Caney, vice president of Boston Consulting Korea, stated that although Korea's economic restrucutring has made outstanding achievements, government-controlled finance, including the control of interest rates and loan availability, still remains in place.

Jangsoo Seo : jsbee@Joongang.co.kr