Speedy reform feared to hurt economic

The Korea Chamber of Commerce and Industry (KCCI) warned that if the new economic team tries to push the reform of four major sectors too hard, it could weaken corporate activities and trigger an economic slump. In its proposal submitted to the Ministry of Finance and Economy, the KCCI recommended that the primary goal of government policy should be focused on a soft-landing of the nation`s economy by improving the overall business environment at a time when companies suffer from difficulties with high oil prices, rising wages and the won`s appreciation.

In this connection, the chamber said that the government needs to expand 2001`s budget for social overhead capital facilities to 17 trillion won, up 3 trillion won from this year, while removing uncertainties in economic activities as well as financial difficulties by offering a crystal-clear direction for liquidation of insolvent companies and financial restructuring. In addition, the KCCI said that the government must pursue steady deregulation and minimize ill effects of reducing legal work hours.