KFI chairman disassociates investigation from economic democratization

Huh Chang-soo, chairman of the Federation of Korean Industries, said on prosecutors’ investigation into the CJ Group and the tax investigation into Lotte Shopping, “It is the government’s authority to investigate and punish businesses, if they do something wrong.” He said in a press conference at the federation`s summer forum on Thursday, “This should not be associated with economic democratization.”

When asked a question if the government tries to discipline companies, he drew the line, saying, “How can the president take care of every single issue. I do not think so.” Regarding the backlash from the business community on the legislation of economic democratization, he said, “Businesses are doing their best for integrity and compliance, but some resistance can be inevitable because (the government and the political community) try to change the business practice all of a sudden.”

Choi Byeong-il, president of the Korea Economic Research Institute under the federation, said, “If a government official is satisfied with one percent growth in the second quarter, he or she must step down.” The GDP growth in the second quarter managed to get out of zero percent in nine quarters, up by 1.1 percent from the previous quarter. He said, “It is serious that a country with 20,000 dollar per capital income made zero percent growth for eight consecutive quarters.”