National agenda: President as CEO

At the end of 1996, Hwang Nak-joo, then the speaker of the National Assembly, objected to Blue House efforts to rush a labor bill through the National Assembly. President Kim Young-sam, who was then abroad, picked up the phone and gave Mr. Hwang a dressing down he would never forget.

On Mr. Kim's orders, his presidential secretaries for political affairs called every ruling party, coalition partner and independent lawmakers and told them to come to the National Assembly by 6:00 a.m. the next day. None of the lawmakers complained. The bill was passed in haste without presence of opposition lawmakers. After that display of power, Mr. Kim lost the support of the people not long before the foreign exchange crisis hit the country.

Until the end of the Kim Young-sam administration, Korean presidents in the past exercised authority as powerful as any emperor. A president headed his ruling party and had the right to nominate candidates for Assembly posts. A president often induced loyalty from politicians with bait － especially ministerial posts. The National Assembly failed to function properly as a legislative organ. It became customary that the president appointed the National Assembly speaker. Past presidents attempted to help friends and punish enemies by influencing investigative agencies. Lawmakers of both the ruling and opposition parties were never free to act according to their convictions.

With those powers, presidents frequently lost touch with their "consumers," the people, and ruled by simply giving orders. Therefore, it becomes increasingly convincing that our politics should adopt a leadership of CEO since the people are the owners and customers of a company named Korea.

"In this era of a global economy, a president who lacks an understanding of business principles will be ignored in the international community and the people under his leadership will suffer," Yoon Eun-key, a management consultant, said.

Rep. Moon Hee-sang of the Millennium Democratic Party visited the White House in early 1990s. "It was unfamiliar to me to see the vice president casually walking side-by-side with the president and talking freely," Mr. Moon recalled.

A president with CEO abilities shows leadership when working not only with his staff but also with counterparts in the opposition. The most important mission of the U.S. president is persuading the Congress to pass bills. Korea needs a president with the resolution of a CEO, who considers the people shareholders of a company and the opposition parties as outside directors with the duty of providing checks and controls in order to promote national interests and heighten the country's competitive power.

When leading a cabinet, a CEO-type president plays a role of a mediator. For such a leader, the National Assembly is like a shareholders' meeting -- a body to persuade. Through broadminded communication, issues are discussed openly among presidential secretaries and aides and their abilities are maximized in decision-making. Such democracy in national governance is what distinguishes a CEO president from an imperial president.

Lee Myung-bak, a former lawmaker, tells a story about Robert Allen, now retired as chairman of AT&T. His nickname was "the silent revolutionary." Mr. Lee met Mr. Allen when he still headed AT&T. "We had just entered the company cafeteria after a business meeting. An office worker approached us and said 'Mr. Chairman, I have an idea.'" Mr. Lee recalled. "After listening to the employee for a while, Mr. Allen made an appointment for the man to come see him in his office. I realized then what made the silent revolution possible. If that incident had happened in Korea, the employee would have been sent back to his manager, but it is more likely that no office worker would attempt to talk directly to the chairman."

You Jong-keun, governor of North Jeolla province and the core economic affairs advisor to President Kim Dae-jung, also saw problems he wanted solved in the current administration. "President Kim announced the so-called 'big deal,' business unit swaps among large groups, in February 1998. Although the program was to reshape the business community and our economy, I had not heard about it until the moment it was announced despite my role as a presidential economic advisor," Mr. You said. "Even now, I don't know who persuaded the president to adopt the idea."

Namgoong Suek, a Millennium Democratic Party lawmaker and former businessman, believes that the reason behind failed medical reform was the lack of business principles in national governance. He complained that the old system was torn down before a new one was in place.

But adopting business principles in national government is not universally accepted. "Too much stress on teamwork and efficiency in national governance, as is done in many businesses, may damage politics and empower only administrative bureaucrats," said Chang Dal-joong, professor of politics at Seoul National University. A CEO-type president should not, he said, concentrate only on maximizing profits as businessmen do. "A successful CEO in politics should pursue quality improvements of people's lives."

by Chun Young-gi