By Ryu Jin
Staff Reporter
Lee Myung-bak’s election as the next head of state is expected to bring about a new honeymoon era between the government and businesses, which could hardly be seen in the current Roh Moo-hyun administration.
Lee, a 65-year-old former Hyundai Group chief executive, has often stressed that he would set forth various ``pro-business’’ policies once he takes office as president.
``If I take power, the biggest change under the next administration would probably be the pro-business environment,’’ the president-elect said in a debate last month.
``Pro-business policies here mean the elimination of various government regulations for large business groups known as chaebol and future visions for small- and medium-sized companies,’’ he added.
He also cited the anti-business sentiment, which he argued has become more prevalent in the past five years under the Roh administration, as the main cause of sluggish corporate investment.
Roh, born to a poor farm family, has been largely at odds with businesses though his administration has actively pursued neo-liberalistic policies including free trade agreements with the U.S. and other countries.
While in office since early 2003, he has put an emphasis on redistribution and public welfare above economic growth, sticking to such principles as the separation between financial and industrial capital.
In particular, conservative forces including the main opposition Grand National Party, from which the president-elect comes, have often denounced Roh’s tax and real estate policies as being ``leftist.’’
Lee, on the contrary, argues that the economy should be left in the hands of the market. He even argued while campaigning that the rules on the separation between financial and industrial capital should also be eased.
``Easing the rules is not only for chaebol but also for the whole economy of the Republic of Korea,’’ he said. ``Some say that this would give benefits only to the large conglomerates. But it would also help the small- and mid-sized firms.’’
Business circles have also expressed hopes for the new administration. Large companies, in particular, expected that Lee’s policies such as corporate tax cuts would help promote corporate activities in a better business environment.
However, most labor groups and anti-globalization activists expressed concerns that Lee’s ``economy-first’’ approach would further accelerate neo-liberalism in the country, allowing only chaebol and the haves to monopolize the benefits of economic growth.
``Lee, like his nickname `bulldozer,’ will step up efforts to strengthen the neo-liberalism in the country,’’ Kim In-ha of the Citizens’ Coalition for the Presidential Election said. ``His policies will only aggravate the socioeconomic polarization of the society.’’