코리아타임즈 Let Bygones Be Bygones

[아톰]

Let Bygones Be Bygones Businesses Should Correct Past Mistakes and Start Anew

Investors seeking to punish corporate window dressing in the past may have to wait two more years. But Prime Minister Lee Hai-chan's remarks to that effect on Friday came as a great relief to businesses, which now have the chance to rectify previous accounting irregularities and be free of the fear of class action suits. It was another undesirable _ but perhaps unavoidable _ compromise between reform and reality. Like it or not, it has been customary for Korean firms to set aside ``secret accounts'' to bribe politicians and bureaucrats as well as fatten the pockets of owners and managers. The 1997-98 economic crisis abruptly brought about far stricter accounting standards, leading to the dismantlement of some conglomerates, like the Daewoo Group. Several years have passed since then, but companies have not completely eliminated the old practice, due in part to the unchanged political and bureaucratic atmosphere. Civic groups and reformists within the ruling Uri Party oppose any setbacks to reform for the sake of policy consistency, saying there has been sufficient time. But businesses counter it is not easy technically _ and culturally _ to correct decades of misdoings. Some go as far as to say few businesses would emerge unscathed if people take issue with the long-established practice. Now that the compromise has been reached, however, the business community should take it as a last chance to break itself of bad habits and be reborn with transparency. The so-called ``Korea discount'' in overseas financial markets is the result of not only militant labor unions but also murky financial practices and governance structure here. Much of the unions' strength is also due to ethical weakness in management. The latest government decision reflects the dire need for a quick economic recovery. Businesses for their part should no longer use the excuse of anti-business policies and atmosphere for avoiding productive investments and essential reform. It is not businesses but unethical businesspeople that the public loathes. As the government has removed the biggest stumbling blocks to normal business activities, the business sector should respond with brisk investments to strengthen industrial competitiveness and create jobs. Corrupt businesses are part of the immoral establishment, particularly in political and administrative circles. Politicians need to devise more transparent and less costly processes while government officials should cut administrative red tape, which has often been the source of unwarranted authority and its accompanying bribery. This is why the ongoing moves against corruption should not end as just empty demonstrations.