First, the high levels of debt that burden the balance sheets of Korean corporations constitute an enormous weight on your economy. Until this debt burden is reduced, it is hard to see how Korean companies can generate the major increases in corporate investment on which their own competitiveness and Korea's future economic growth will depend. There are troubling signs that a number of Korean corporations, believing that the economy is about to improve, may be resisting creditor efforts to further restructure their operations. A failure to fully implement market-based corporate restructuring could lead to serious economic trouble in the years to come. For Korean companies to prosper, they will have to be able to operate in a global environment in which companies are constantly measured by their ability to invest and operate in ways that enhance return on equity and create new wealth for their shareholders.
Shareholder value is the new mantra of the global economy.
Another priority area is regulatory reform key. A continuation of the deregulation effort of the past several months is crucial to attracting more foreign investment and making Korean companies more competitive. Deregulation is also vital to the creation of new firms and new jobs. I do not see the prospect of much job growth in Korean manufacturing. However, there are abundant opportunities for new jobs in relatively underdeveloped sectors of the Korean economy, like in services.