Economic reform limited to lip service

The current regime, which is recklessly announcing splendid policies with frequent meetings, reminds us of the fable of a shepherd.

In just one year since President Kim Dae-Jung declared that Korea has overcame the foreign exchange crisis, the nation's economic situation has deteriorated to the extent that worries about another crisis prevail.

A number of reform policies, including corporate restructuring and financial reform, were announced. Yet none of them were properly implemented, thus losing the confidence of the market.

The 12 major targets in four sectors, as announced Wednesday during the meeting presided over by the president, are an example of the situation. The topics are only a replica of what was announced when the second-term economic team was established and the Financial Supervisory Commission announced the second phase of financial restructuring plan. There is nothing new except the fact the president has begun to check the economic situation by himself.

The problem is that there are only announcements and there is no implementation. The criteria for screening insolvent corporations, which is the key to corporate restructuring, was announced belatedly, and without enough review.

The sales of Daewoo Motor and Hanbo Steel returned to the original status. It is likely that the remarks of Financial Supervisory Commission that Daewoo Motor will be sold by Oct. 20 and the finance-economy minister's pledge that merger of blue-chip banks will be realized during October might not be realized.

The government of President Kim Young-Sam carried out a series of reforms, but they ended with the foreign exchange crisis. Under the slogan of the new economy¡¯s five-year plan, the government then produced epoch-making plans like real-name financial transactions, real-name system in real estate registrations, reform in the foreign exchange system, tax reform and comprehensive financial taxation system. However, they were not properly implemented.

Just like the separation of pharmacies from medical practice, which has developed into anarchy, the government will lose its confidence if it announced a series of policies under the pressure of reform.

Rather than announcing attractive policies or holding frequent meetings led by the president, it is necessary to establish solid policies, even if they are slow, and implement them one by one.