Views Expressed at Meetings of Special Task Force on Asian Currency and Financial Crisis
(Reference for Keidanren Position Paper "Towards Economic Recovery in Asia")

IV. Proposals regarding Republic of Korea


  1. Proposals to Japanese government
    1. Support development of small- and medium-sized enterprises
    2. The Japanese government needs to devise measures to support the development of small- and medium-sized enterprises in South Korea.

    3. Strengthen cooperation between financial authorities of the two countries.
    4. Even more so than in Japan, the Korean financial system operates on the basis of a convoy mentality. This proved to be the trigger of the current crisis. Japan has much to learn from South Korea's case.

  2. Proposals to Korean government
    1. Change the policy of import diversification.
    2. The import diversification policy constitutes a de facto prohibition against the import of certain products from Japan. Even for imports from third countries, country-of-origin regulations ostensibly aimed at preventing indirect imports from Japan require that Japanese manufacturers provide a tremendous amount of information about their finished and semi-finished products in order to obtain country-of-origin certification. Required information includes the cost of raw and semi-finished materials, and even business secrets. (These requirements are due to be eliminated by July, 1999.)

    3. Firmly enforce amended Labor Standards Law(which include Mass Layoff Act).
    4. In order to introduce greater flexibility into labor-management relations and enhance the economy's international competitiveness, the amended Labor Standards Law should be firmly enforced.


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