(News Focus) S. Korean politics deter investment: biz leader

SEOGWIPO, South Korea, July 31 (Yonhap) -- The head of South Korea's largest
business lobby fired off a series of harsh criticisms this week against the
nation's fractured politics, saying the situation is deterring companies from
investing and hurting the economy.

The remarks by Cho Suck-rai, chairman of the Federation of Korean Industries,
came as bills aimed at easing restrictions on large conglomerates were left
stalled in the National Assembly.
"Our politics is generating problems, rather than resolving them," Cho said in an
opening speech at an annual forum organized by the federation on this resort
island.
"Given the situation, isn't it going to be difficult for companies to invest for
the next 10 to 20 years?" said Cho, who also serves as the head of Hyosung Group,
a conglomerate with business interests ranging from chemicals to heavy machinery.

On the sidelines of the forum, the 74-year-old business tycoon also accused
politicians of showing a lack of leadership as the nation's economy struggles to
cope with the worldwide crisis.
"The role of politics is to arbitrate various requests at a difficult time like
this," Cho said. "Politicians should understand that showing leadership is an
essential task."
Cho's disappointment was echoed by many corporate leaders as the nation's
unicameral parliament remained in disarray, with rival parties sparring over
media law revisions that allow terrestrial broadcasters to be owned by private
firms and newspapers.
Last week, scores of lawmakers scuffled at the National Assembly as the ruling
Grand National Party (GNP) forcibly passed the revisions. Critics say the laws
would reduce media diversity, as only a handful of conservative dailies have the
resources to enter the broadcast market.
Opposition lawmakers have declared a 100-day campaign to fight the laws outside
of parliament, leaving many economic reform bills stalled.
One of delayed bills is a revision to a labor law requiring employers to fully
hire contract workers after two years of service. As the bill went into effect
two years ago in July, the government has raised fears that millions of
non-regular workers will instead be let go due to the poor economic climate.
While many politicians remained silent over Cho's remarks, Rep. Chung Mong-joon
of the GNP said he was concerned about the criticism.
"I'm worried that the remarks may further undermine the authority of politics,"
said Chung, who is also the biggest shareholder of Hyundai Heavy Industries Co.,
the world's largest shipbuilder.
"Although criticism is necessary for politics and politicians, it could lead
people to misunderstand the state of our politics," Chung told his colleagues in
Seoul.
(END)