Roh soothes worried businessmen

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Roh soothes worried businessmen

President-elect Roh Moo-hyun said yesterday that he would aim for a gradual, self-governed reform of Korean conglomerates, known here as jaebeol.

Mr. Roh told his transition team, according to Lee Nak-yon, Mr. Roh's spokesman, that the conglomerates must have plenty of time to accommodate to the planned changes.

Mr. Lee said media reports that the transition team is considering reforms targeting specific conglomerates have sowed unease in Korea's financial markets and among domestic and overseas investors. "Policies targeting specific conglomerates will not be drawn up," he said.

Mr. Roh wants jaebeol reform to be done through changes in existing laws, Mr. Lee said. Mr. Roh and his advisors have said that they want better corporate governance at Korea's big firms and a separation of some of their many subsidiaries.

The announcement came amid a growing chorus of protest and concern by Korea's big businesses concerning the tone of announcements from Mr. Roh's transition team about the speed and extent of proposed reforms of the conglomerate culture here. The team, filled with economists and civic activists who have stressed wealth distribution rather than economic growth, has been watched warily by corporate leaders.

Team members also drew in their horns and sounded conciliatory. Kim Jin-pyo, deputy head of the team, reiterated Mr. Lee's statement that Mr. Roh would not draw up policies targeting specific conglomerates.

Mr. Roh reportedly instructed the transition team to speak out about his administration's reform plans after media reports that several conglomerates, including Samsung, were on the new administration's blacklist. He reportedly complained that the media are trying to draw the incoming administration into a fight with business leaders here.

Political observers said the incoming team is sensitive to getting under businessmen's skin even before Mr. Roh is inaugurated on Feb. 25. His Millennium Democratic Party holds a minority of National Assembly seats, making prospects for bold reforms problematical. Mr. Kim, the transition team deputy head, noted that most of the proposed reforms would require legislation. Some aides suggest that Mr. Roh will demand that the conglomerates come up with their own reform plans and stress transparent management rather than seek legislative curbs.


by Hong Byeong-gee
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