[Editorial] Uri Surrenders

Although the government had agreed to lift regulations on the circular shareholding system while easing the investment cap on conglomerates, it failed to reach an agreement Monday at a consultation due to strong opposition from Uri Party lawmakers. “The government’s plan signifies a complete surrender to the conglomerates,” the Uri Party lawmakers said.

It’s been only four months since Uri Party Chairman Kim Geun-tae proposed “a new deal” while visiting a series of business organizations, such as the Korea Chamber of Commerce and Industry, beginning at the end of July. “Let us make a new deal on which the government boldly accepts the business community’s suggestions in return for active corporate investment and employment,” Kim said. Kim pledged that he would aggressively push for a new institutional system that would ease regulations like the investment cap, as well as protect management control. His movement seemed to indicate that the ruling party had joined hands with the business circles to bring economic revival.

President Roh Moo-hyun, however, expressed his discontent with Kim’s efforts in person and the Uri Party lawmakers also criticized the party’s identity. As might have been expected, Kim has suddenly stopped mentioning the new deal. Meanwhile, the Ministry of Finance and Economy (MOFE) belatedly proposed a plan to minimize investment restrictions in an effort to revitalize investment environment by suppressing the opposition from the Fair Trade Commission (FTC). However, the FTC and the ruling Uri Party appear to be waiting for retaliation against the MOFE.

The ruling Uri Party has proposed a political negotiation with the main opposition Grand National Party. But the public and the opposition parties that have witnessed the discord within the Uri Party immediately showed their skepticism first. Domestic investment, which has been sluggish over the past four years under the Roh administration, has shown no sign of recovery, discouraging job creation and consumption. This vicious cycle will inflict enormous pain to ordinary people. It has been a while since the public’s complaint on the sluggish economy turned into fury.

Despite the situation, Uri Party lawmakers have condemned investment-friendly policies, saying they indicate a complete surrender to the conglomerates. I wonder whose country these lawmakers represent. Uri Party lawmakers seem to be infected by “anti-public reform disease” that makes them believe jeopardizing the livelihood of ordinary citizens by harassing conglomerates is a corporate reform.