Opposition party's position on Hyundai

What is the position of the opposition Grand National Party concerning the Hyundai Group Crisis, which stubbornly remains unresolved even after all the coaxing and pleading by the government?

Some wonder whether the GNP has decided to take a back seat in the matter, while others wonder whether the party has a consensus or agenda in the matter. The voices of four party members who are economists can shed light on the position of the party.

Government must take the helm

The GNP has been opposing the government`s intervention in the financial institutions and had submitted a bill for the disintegration of non-viable financial institutions. However, for Hyundai, the GNP has requested governmental intervention.

"For a healthy company, a policy of non-intervention should be the ruling principle,¡± assistant director of Yoido Research Center Yoo Seung-Min said. ¡°However, for a non-viable company, that should not be the case. While the stockholders look toward the government for help, it would be wrong for the government to take the stance of letting the market forces rule."

The chairman of the committee for the second round of policy amendment had a specific recommendation for the conglomerate.

"Hyundai needs to sell off a great portion of its assets, and the government needs to help Hyundai find a market for its assets."

Hyundai may sink or swim

"The Hyundai crisis did not result from a temporary cash-flow problem,¡± party official Yoo Seung-Min said bluntly. ¡°In fact, it arose from technological bankruptcy. It will be detrimental to the healthy subsidiaries of Hyundai if the government tried to resuscitate the company that has gone past the point of survivability. It would be correct to allow the market forces to do their work."

On the other hand, vice chairman of the Policy Planning Committee Kim Man-Jae pegged the amount of total liability of Hyundai Engineering and Construction and Hyundai Investment at 5 trillion won.

"Hyundai Construction could be absorbed by Hyundai Heavy Industries, while Hyundai Investment is absorbed by Hyundai Group management, which would then be responsible only for the new debts arising from the merger," Kim said.