Departing from their low-key position, business circles are beginning to raise their voices against political parties’ moves to impose stricter regulations on conglomerates in the name of economic democratization.
A research institute affiliated with the Federation of Korean Industries, the country’s main business lobby group, held a debate this week, where participants criticized politicians for pushing ahead with bills that go against market economy principles and shackle big business.
They claimed the parties are resorting to an ambiguous concept to justify a set of politically-motivated measures, which disregard the economic reality.
An expert argued a constitutional clause mentioning economic democratization should not be interpreted as justifying excessive intervention in the market.
These arguments, which were timed for the start of the new National Assembly elected in the April vote, appeared to reflect the determination of business circles to stand up to what they see as populist measures designed to woo voters in the lead-up to the Dec. 19 presidential poll.
They seem to feel more urgency to block the political push amid deteriorating economic conditions weighing down corporate operations. They may hope the gloomy economic outlook could provide more compelling grounds for their case.
Also apparently behind their assertiveness is the changing political atmosphere.
The Unified Progressive Party, which has advocated the most radical approach toward reforming chaebol, or family-controlled conglomerates, has been embroiled in aggravating internal discord over the expulsion of pro-Pyongyang lawmakers.
The liberal main opposition Democratic United Party, which has sought to form an alliance with the UPP to win the presidential election, is finding itself in an awkward position, while the ruling Saenuri Party hopes to ride the surging conservative tide.
As some observers note, however, business circles’ shift to a confrontational mode is causing a backlash from the ruling and opposition parties alike.
Despite differences over a wide range of issues from handling North Korea to forming parliamentary committees, the rival parties have been of the same mind on the need to put tighter reins on chaebol companies.
Their policymakers have expressed views that efforts can be no longer spared to put a brake on the deepening economic polarization that is getting closer to the point of threatening social stability.
In response to business arguments, a group of Saenuri lawmakers pledged to stay the course at their meeting this week, with some calling for tougher approaches toward reforming chaebol.
DUP officials also said there would be no change in their push to enact laws to tame the conglomerates.
It is worrisome for the parties and business circles to be on course toward a head-on collision at a time when concerted efforts are needed more than ever to keep the economy from being engulfed by growing risks both at home and abroad.
This confrontational atmosphere is definitely not fit for the sense of crisis surrounding government and corporate officials that the economy might slide into a long period of recession, with the entire world affected by the eurozone debt problems.
However the parties feel the need to highlight their tough handling of chaebol in the run-up to the presidential election, the upcoming months are not the time for lawmakers and business leaders raising voices against each other.
There would be no point to their discord should the economy vulnerable to external risks go into deep recession, against which all possible policy options should now be prepared.
Political parties should restrain from pushing the issue of taming chaebol too far in their competition to win the next presidency with what could be regarded as moves to satisfy populist sentiment.
Conglomerates, for their part, should be more active and sincere in enhancing transparency and meeting their social responsibility for shared prosperity. Only when accompanied by such efforts, can their arguments against what they see as unjustified political pressure be echoed among the public.
