[Editorial] Indiscriminate probe into business firms

The business community is making angry protests against the Financial Supervisory Commission`s decision to exercise its site investgating powers over business firms as well as the Fair Trade Commission`s decision to further extend the powers the FTC temporarily obtained to trace firms` bank accounts.

Needless to say, any unlawful business activities must duly be sanctioned, but any inordinate exercise of investigating powers may unduly curtail free business activities with the consequence to dampen the nation`s economy.

The FSC has been making tenaciously its internal efforts to strengthen its business onitoring powers. But it restrained from making such efforts for a while because of the public`s harsh criticism against the FSC`s such move.

The Hyndai crisis in August has, however, given the FSC a convenient excuse to go ahead again with its original plan to strengthen its powers.

The FSC initially argued that it could not effectively investigate the Hyndai executives because it has no sight investigating powers. Without such powers, the FSC managed in the end to regulate the Hyundai Group by means of credit control.

If the FSC wants to retain the means to expand its powers of investigation whenever they are beset by momentary difficutlies, it is solely relying on its administrative expediency with no other considerations which follow therewith.

The same could also be said about the FTC`s extension of its temporary powers to trace firms` bank acounts. This temporary permit raised many controversies when it was first introduced because of its adverse effects. For that reason, the duration of the temporary permit was shortened from 3 years to 2 during the parliamentary deliberations over its introduction. The tracing of bank accounts was strictly confined to the investigations of unlawful internal trading. The FTC made it clear that it would not seek the extension of the temporary powers of the bank accounts trace, but it is seeking the extension of such powers, the validity of which is due to expire at the year`s end. Such a reversal of its earlier position not to

renew is causing no small amount of loss of confidence inthe government`s administration.

There are 5 agencies that have the powers of business probes, be they site investigations or bank accounts traces:prosecutors, police, the taxation bureau, the FSC and the FTC. We hardly think that there are other capitalist countries except Korea to have their business firms under such rigorous scrutiny.

Striking changes in the nation`s economic environment andeconomic mind and thinking were brought about due to theforeign exchange crisis. Closed business management before the IMF crisis can no longer be sustained now. Thus, the administration`s powers of business investigations and bank account traces should be reduced. It is now easier to look into the business management from outside the firms because of the strengthened rights of small stocks and shares owners to monitor the business companies. Thus, the administration should devise measures to rectify many problems that are associated with business supervisions such as many supervisory agencies` excessive and overlapping business investigations.