Roh Stresses ‘Win-Win Model’ in Industrial Relations

Following is an excerpt of President Roh Moo-hyun's speech at a luncheon hosted by the U.S. Chamber of Commerce and the U.S.-Korea Business Council in Washington on Tuesday. -Ed.

I am very pleased to see so many distinguished businesspeople that have been leading the world economy.

About 80 days have passed since the new Administration was launched in Korea. The tenets of the new Administration in running state affairs are "principle and trust", "transparency and fairness," "dialogue and compromise," and "decentralization and autonomy."

Of these, I place special importance on "trust." I believe that trust constitutes the basic factor in economic development, social integration, and international relations.

The new Administration will steadily and consistently press ahead with market reforms. The goal is to introduce global standards in all Korean economic sectors and then to go ahead to reform economic conditions to match the new standards.

We will provide the laws and systems to help improve market fairness and corporate transparency. The function of the market to oversee corporate transparency will be expanded steadily. Once transparency is bolstered, the comparatively undervalued stock market in Korea will leap forward.

The game will be transparent and fair. There will be no line defining differences between Koreans and foreigners. There will only be a market that is wide open to the world.

I am aware that many potential investors targeting the Korean market are concerned about labor-management relations.

Indeed, confrontation and friction between labor and management have been a considerable drawback on the Korean economy. But change is in the works, and there will be much more. Labor disputes at foreign-invested firms have been reduced virtually to a minimal.

I have thus far been faithfully fulfilling the role required by the times in dealing with labor-management issues.

At a time when the labor movement was repressed unfairly, I sided with the workers to protect human rights. When the rights and interests of workers were enhanced, I offered to coordinate and mediate disputes, scoring breakthroughs by negotiating compromises.

Drawing on the experience thus far accumulated, I will promote a new 'win-win model' of labor-management cooperation. Not only the law and system and practices, but also the flexibility of the labor market and even the rights and duties of workers will match international standards.

The environment for investment by foreign investors will be improved.

Every factor impeding investment and corporate activities by foreigners will be pinpointed and addressed.

In particular, drastic improvements will be made in medical services, educational facilities and the residential environment-areas which present problems for foreigners.

The economic free zone scheduled to be designated by the end of this year is designed precisely to provide such a corporate and living environment.

As for the North Korea's nuclear issue, which left investors wary, I will try to resolve it peacefully without fail.

I am confident that the problem can be resolved through peaceful means without further aggravation. President George W. Bush has also emphasized many times that the nuclear issue will be solved peacefully through diplomatic means.

North Korea must give up its nuclear program without fail so it can become a responsible member of the international community. Close coordination between Korea and the United States will serve as a steppingstone to the peaceful resolution of the problem. I will meet with President Bush tomorrow to have serious discussions.

This year is the 50th anniversary of the Korea-U.S. alliance.

Korea-U.S. relations have been evolving into mature ties with both countries doing their best to fulfill their responsibilities on the basis of mutual respect. Korea's troop dispatch to Iraq is a symbolic testimony to this.

Korea-U.S. relations will be more important over the next 50 years than during the past 50 years. The alliance should be maintained even more solidly. I will work to help orient the relationship toward the future and will pursue full partnership on the basis of solid trust.

Korea and the United States are partners in economic cooperation and are profoundly important to each other.

The United States is the largest trading partner and investor for Korea. Korea is the seventh largest trading partner and sixth major export market of the United States. Korea imports many more goods from the United States than do most European nations, long its trading partners.

My Administration and I will extend the maximum possible support to help vitalize investments and exchanges among business leaders of the two countries and technological cooperation.

Let's move ahead together in pursuit of common prosperity.

Thank you.