Major Businesses to Invest W46 Tril. This Year

By Shim Jae-yun and Seo Jee-yeon
Staff Reporters


President Roh Moo-hyun on Tuesday said the government would step up efforts toward deregulation to aid businesses in their bid to expand investment.

``A pan-governmental body will be established under the wing of the presidential commission on deregulation to speed up the process if necessary so that the president can directly check the details,’’ he said during a meeting with a group of business leaders.

Toward that end, Roh indicated the need for enterprises to submit specific cases and consult with the government.

While endeavoring to promote business investment on the one hand, Roh also said the government would push for plans for greater managerial transparency in the major conglomerates on the other.

In the meeting, heads of the top 15 big business groups said they will increase their combined investment to 46 trillion won this year, representing a 34.2 percent increase over last year.

The year-on-year rate of increase for investment will be the highest since 1995 when it hit 45.1 percent.

The meeting was designed to discuss ways to revive the faltering economy.

With the top 15 conglomerates responsible for 36.9 percent of planned total investment, or 1.7 trillion won, if the remaining investment plans are implemented, the economy, now suffering from depressed domestic demand and high unemployment, is expected to see a turnaround in the second half of the year.

A number of large investment projects were unveiled, including a thin film transistor-liquid crystal display (TFT-LCD) line in Tangjong, South Chungchong Province and semiconductor production bases in Kihung and Hwasong for Samsung Group, and LG Group’s LCD plant in Paju, Kyonggi Province.

On top of the expansions in investment, group owners also pledged to map out ways to create jobs.

``Business people are apparently turning to a give-and-take strategy to achieve what they need, seeking for an improvement in their relations with the government,’’ industry watchers said.

The group owners attending the meeting included Samsung Group chairman Lee Kun-hee, LG Group chairman Koo Bon-moo, Hyundai Motor Company Chairman Chung Mong-Koo and SK Corp. chairman Chey Tae-won.

Three heads of business associations _ Park Yong-sung, chairman of the Korea Chamber of Commerce and Industry; Kim Jae-chul, chairman of the Korea International Trade Association; and Kang Shin-ho, chairman of the Federation of Korean Industries _ were also present.