NYT Quoting FKI Vice Chairman as Saying Transition Team’s Goal Is Socialist

The feud between President-elect Roh`s transition team and business circles again came to the fore.

In the Jan. 10 New York Times edition, Kim Sok-jun, vice president of the Federation of Korean Industries (FKI) said that the transition team’s goal is "socialist." The transition team is asking for his explanation and proper measures after the newspaper report came out.

In an article titled "After the Election, Reassuring Korean Business," The New York Times quoted Mr. Kim as saying about the presidential transition team "They could be very dangerous for economic policy. They want very rapid change in the system. Their goal is socialist. We are worried about that."

On Sunday, however, Mr. Kim denied the report saying, "I just said that the incoming government is likely to strengthen the social safety net, but I think I never talked about socialist." He explained that he would "ask the reporter, Don Kirk, for a revised report." "I seem to have said that to push for rapid reform is dangerous. But it was just my opinion, not that of the FKI."

In an announcement, The FKI apologized for that incident, and it said it would deliver an official explanation to the transition committee, once the report proved not to be true to his own words.

However, the transition team made clear his willingness not to let him get away with it, because the FKI vice president’s explanation is not understandable. "It is not seen as a minor mistake, but as intended words. The FKI should make a fact-finding investigation into his remarks with the newspaper and if there are some problems, we request it to take proper action," Chung Sun-gyun, spokesman for the presidential transition team said.

Ñ Underlying discord = This incident is not a simple happening. Rather it shows the deep discord between the transition team and the business world.

Conglomerates, members of the FKI, are strongly against Mr. Roh`s Jaebol policies such as securities-related class action lawsuit and the so-called "all-inclusive inheritance tax system," but they are not just voicing their opposition strongly. Although the President-elect tried to reassure businesses saying there would be no surprising economic measures on several occasions, they are still anxious.

It is true for the transition team. Until now, it has restrained from criticizing and making complaints about business circles. But this time, it is insistent on getting to the bottom of the business world’s groundless criticism of the incoming government’s policy.

Ñ The economic world in panic = The economic world is worried about any possible harms as the chilled tension between the transition team and the FKI is rising.

An official with Samsung criticized the FKI vice chairman’s remarks in an indirect way, by saying that at a time when the business world is tensed about the new government’s economic policy line, the FKI need not cause an unnecessary conflict by using extreme expressions.

"Now, the government and the business world are walking a tightrope and careful about each other," another official with an economy-related organization pointed out. "If the incoming government and conglomerates are seen as at odds, the sense of uncertainty about the Korean economy could spread out."

Yeon-Su Shin Joong-Hyun Park ysshin@donga.com sanjuck@donga.com