[EDITORIAL]Talking with businessmen (2004.05.27)

[EDITORIAL]Talking with businessmen Recent talks between President Roh Moo-hyun and the nation's business leaders confirmed a vast difference in their perception of the current state of economic affairs. In his opening remarks on Tuesday, Roh said the economy has come out of a long tunnel and that it is time for the business community to make a fresh start. His optimistic appraisal of the current economic conditions was in stark contrast with that of the businessmen, who are concerned the economy may be entering another long tunnel. Apparently, the president's optimism was based on the first quarter growth in gross domestic product, which posted a healthy 5.3 percent increase over the corresponding period of last year. But the domestic business community is worried about the "three highs" clouding the global economic outlook - high oil prices, which have been renewing records these days, rising inflation and signals of higher interest rates. If untamed in the months ahead, these will surely sap the vitality of Korean exports, now the single engine of growth for the nation. That underpins the concern of the business leaders. President Roh would have gotten what he wanted from his talks with the businessmen - to hear their views on how to turn around the tattered economy - if he had stopped his pontification there and encouraged them to speak their minds freely. But he went one step further when he said he suspects the business community has hidden motives when it inflates the nation's economic difficulties. Those remarks were reminiscent of what he said when he was reinstated earlier this month by a court ruling against his impeachment by the legislature - "No one should generate a sense of crisis and fan insecurity in an attempt to deter (the government's push for) reform." The businessmen could not be blamed if they felt so intimidated that they did not present their views candidly. Many of the businessmen participating in the conference with the president were spared punishment last week when the prosecution decided not to charge them with criminal offenses for making illegal contributions to the 2002 presidential candidates. The law-enforcement agency said it made the decision out of concern for the nation's economy. Still they felt insecure, as the prosecution threatened to deal sternly with illegal trading among companies affiliated with a family business group, listed affiliates' unlawful support for unlisted ones under the control of chaebol owners, and other illegal business practices. Under these circumstances, the leaders of the 15 business groups may have felt the need to cobble investment projects and announce them when they met the president as a token of appreciation for the government's leniency toward them. Indeed, they told the president they would spend 46 trillion won this year, up 34 percent from last year. But it would have been more sensible for the president to brief them on his economic policy and solicit opinions from them and for the business leaders to readjust their investment projects later on, if necessary. Then their investment plans would have sounded more credible. 2004.05.27