Address by Incoming President Roh Moo-hyun at a Breakfast Meeting with the American Chamber of Commerce in Korea and the European Union Chamber of Commerce in Korea January 17, 2003
Honorable President William C. Oberlin of the American Chamber of Commerce in Korea, President Frans Hampsink of the European Union Chamber of Commerce in Korea, ambassadors from many countries, Amcham and EUCCK members, and distinguished guests,
It is a pleasure for me to have breakfast and discussions with you, but it surprises me to see so many here at this early hour. Thank you.
As you may know, sharing meals has special meaning in Korea. Family members are called sikku "ku" means "mouths" and "sik" means "to feed." I am going to speak about my philosophy and the direction of my economic policy with you as if you were my sikku.
The Korean economy has been deeply integrated into the world economy. It is time for the Korean economy to positively search for a way to contribute to the world economy with a sense of responsibility. The path the Korean economy should take in the 21stcentury is toward building an advanced economic system able to adapt to and compete in the global era. In this context, I have based the foundation of my policies on principle, trust, autonomy, a division of rights and such democratic values as societal integration.
Ever since I first entered politics, I have been making effort to faithfully live up to such democratic values and processes. In particular, I have been endeavoring to match words with deeds. For example, under military-influenced administrations, I fought for democratization, and during the time of democratization, I advocated that politics be based on principle and trust. I have always tried to live my life putting values and principle above immediate interests.
As a diverse information infrastructure has fast been developing and as freedom of thought and expression has been opening new horizons, Korea is now poised to take off as a genuinely democratic, information society. That is the start toward an advanced society.
The basic framework of the Korean economy should be dovetailed into global standards as those in advanced countries. And that requires sustained reform of the market, corporations, administrative regulations, foreign investments, and labor-management relations.
To ensure the success of the reform of the economy, which is often likened to a living organism, the speed, time and scope should be properly determined to match reality. I have made it clear that the direction of economic reform would be oriented toward autonomy, transparency and fairness and that reform would be pursued in a long-term, gradual and autonomous fashion. I will consistently press ahead with an economic policy that will help make the market predictable and create a vibrant, free and fair market order.
Economic order and principle must be observed. The power dominating the market must not be abused, nor the rights of the weak and other parties involved encroached on. Neither efficiency nor justice can be expected of an unfair market.
The "compassionate community" I intend to pursue will be a society in which order and principle are observed and efficiency and justice exist together. I will install the institutional device needed to help enhance the fairness of the market and corporate transparency. Over the past five years much has been done to improve accounting transparency, but we still have a way to go to reach international standards. Whatever improvements are made, they need to be shaped into real practices. Audits must be conducted in a neutral and transparent manner.
I will see to it that class action suits are adopted soon within the limited boundaries of the system that the Government has introduced to the National Assembly. The class-action system is very common internationally. The system we are going to adopt will be limited to such obviously illegal actions as accounting dishonesty, false public disclosures and stock price manipulation. Our proposition is by no means unreasonable or shocking.
A reasonable structure of control is required if the market economy is to genuinely blossom. Although much improvement has been made in the past five years, I believe there are some areas that need to be studied further and complemented in respect to the control structure such as the system governing outside board members.
I will see to it that administrative regulations will be deregulated drastically while trying to improve the fairness of the market and corporate transparency.
It is the right of each player in the economy to make decisions about economic activities and take responsibility. I will take sweeping action to dismantle regulations held over as a legacy of the government-led economy, ambiguous legal clauses, and quasi-taxes. All regulations in their entirety will be reviewed from scratch because they can be hotbeds of corruption and irregularities.
However, those regulations that preserve the environment and safeguard the people will be more thoroughly managed. Regulations designed to maintain a transparent and fair market order will be strictly administered. The fair enforcement of laws will be a routine, so that those who abide by the law will not suffer disadvantages.
Distinguished guests,
I am aware that labor-management problems are what foreign investors who are doing business in Korea are concerned about most. The most desirable labor-management relations are those that promote cooperation. Cooperation can be achieved through dialogue and compromise, and dialogue and compromise can be made possible through trust. Trust is built up by transparency.
To my regret, there is insufficient dialogue and compromise in labor-management relations in Korea. There are not many who have had experience in coordinating relations between the labor and management. Labor-management relations can be stabilized if labor, management and the government continue to heighten the level of public consensus on the issues based on fair social norms and mutual trust. I will try to help readjust the functions and prestige of the Tripartite Committee of labor, management and government representatives and turn it into a viable organization for realizing a public consensus.
I have always spoken with confidence about attaining labor-management cooperation. In the past, I was able to mediate settlements after listening to both parties in labor-management disputes involving the labor strikes at Daewoo Shipbuilding, Hyundai Heavy Industries, and the one involving Renault's purchase of Samsung Motors. I have accumulated valuable experience so I know that negotiated settlements are possible with trust gained from both parties.
In mediation, I believe that trust, principles and other democratic values and procedures are important. Based on first-hand experiences, I intend to help create a new model of labor-management cooperation. It is incumbent on us to forge a cooperative labor-management culture, boost productivity, and nurture the energy for growth by taking advantage of societal efficiency that will result from reduced expenses.
It is my belief that companies that operate here with foreign capital investment are not foreign companies but Korean companies in that they provide jobs, create economic value and pay Korean taxes. International firms here produce 10 percent of the gross national income and international investors own 36 percent of all shares transacted on the Korean stock market. The importance of American and EU investment in Korea cannot be emphasized too much as it occupies 60 percent of all foreign investment in the Republic. I appreciate your pivotal role.
I believe many of you are very interested in the free economic zones we are creating. In those special zones, governmental regulations and interference will be minimized and diligent efforts will be made to help relieve all types of inconveniences for international investors. I have been informed that medical services and education are two important problems. Initially, I will actively seek to open medical and educational services for international residents in the special economic zones. In this connection, I would also like to ensure that basic labor rights are strictly upheld and that special efforts are exerted in devising measures to prevent labor-management disputes in advance. I have ambitious plans to make Korea the economic hub of Northeast Asia. The region boasts one fifth of global production. Geopolitically, Korea is located between the two giant economies of China and Japan. A total of 700 million people live within a radius of 1200 kilometers from Seoul, more than the American and EU populations combined.
The country is well equipped with a well-educated population and production technologies along with the world's foremost standards in the information infrastructure. A sufficient distribution base has already been put in place, including the Incheon International Airport and Busan and Gwangyang ports to name just a few. When South-North relations progress and the Trans-Korea, Trans-Siberia and Trans-China Railroads are linked, then all Asia will be connected with Europe and the starting point will be South Korea. In the long run, I would like to see pipelines constructed to supply Siberian natural gas to the Korean Peninsula and then on to Japan.
I am not chanting a mere slogan when I say that we will build the hub economy of Northeast Asia. I will organize a team at Cheong Wa Dae solely dedicated to that purpose and make sure it becomes a reality in the near future. This project will hinge on first establishing a system of South-North peace and cooperation. Building a hub economy of Northeast Asia is also essential to settling peace in the region. Regional peace is directly related to the interests of the United States and the EU not to mention the countries in the area. Naturally, it is hoped that the successful completion of the plan will serve as a catalyst to perk up the stagnant global economy. I am certain that you all will reap the fruit by participating in the process.
Next, I would like to make a few remarks regarding South-North cooperation and the North Korean nuclear issue. What is important for me in this matter is continued conciliatory and cooperative efforts, the establishment of a peace structure on the Korean Peninsula through firm ROK-U.S. coordination, and on the basis of that, the construction of a cooperative economic system in Northeast Asia. We have to induce Pyongyang to reform and open up. Neither war nor collapse helps the peninsula. We should resolve the North Korean nuclear issue through dialogue, and I think it is possible. I firmly believe that the issue will be solved in that manner.
At the earliest date after my inauguration, I plan to visit the United States and consult with President George W. Bush on the matter. I will closely consult with Japan, China, Russia, the EU and other countries while continuing to persuade Pyongyang to give up its nuclear project.
I am aware that there has been much worry in connection with the candle vigils staged over the death of the middle school girls. When the Korean War broke out, the United States and many EU countries dispatched young people to help us. Many of them lost their lives in defense of Korea. We cannot forget that even for a moment. However, there have been some instances of misunderstanding over the candle vigils. The main focus of the mass gatherings was the need to revise the Status of Forces Agreement, but, of course, the demonstrations were staged on the premise that the U.S. troops would continue to stay in Korea. These were voices aspiring for a more mature relationship between Korea and the United States. ROK-U.S. relations have been, are, and will continue to be treasured, and I certainly hope that America will remain our ally in the years to come.
Distinguished guests,
I would like to remind you anew that you and the Korean people today are in the same boat named "Korea" and are sailing to a common destiny. I will try to be a good captain of the ship you are aboard so that the passengers will be comfortable and will revisit the ship in the future as well. I intend to become your favorite captain. I once served as the Minister of Maritime Affairs and Fisheries and have a credible background to become a good captain. You can depend on my words.
Let us all join forces to vigorously sail toward our goals freedom, peace and prosperity. By doing so, we will reap the success rightly due us while the Korean economy will continue to progress toward a bright future.
Thank you very much. |