'저는 그들의 땅을 지키기 위하여 싸웠던 인디안들의 이야기를 기억합니다. 백인들이 그들의 신성한 숲에 도로를 만들기 위하여 나무들을 잘랐습니다. 매일밤 인디안들이 나가서 백인들이 만든 그 길을 해체하면 그 다음 날 백인들이 와서 도로를 다시 짓곤 했습니다. 한동안 그 것이 반복되었습니다. 그러던 어느날, 숲에서 가장 큰 나무가 백인들이 일할 동안 그들 머리 위로 떨어져 말과 마차들을 파괴하고 그들 중 몇몇을 죽였습니다. 그러자 백인들은 떠났고 결코 다시 오지 않았습니다….' (브루스 개그논)





For any updates on the struggle against the Jeju naval base, please go to savejejunow.org and facebook no naval base on Jeju. The facebook provides latest updates.

Friday, July 24, 2009

Text Fwd: New Rule Affects Samsung, Woori

Korea Times
07-23-2009 18:32
New Rule Affects Samsung, Woori
By Kim Tae-gyu, Staff Reporter

Samsung Group, the country's largest conglomerate, and the state-owned Woori Financial Group have taken center stage following a revision of the financial holding company system.

Starting this December, non-bank financial holding firms will be allowed to have manufacturers as subsidiaries, allowing Samsung to employ a holding company system.

Thus far, its main affiliate Samsung Life Insurance has worked as its de facto holding company together with the Everland amusement park. The country's top insurer has a 7.21-percent stake in Samsung Electronics.

Should Samsung Life increase its stake in Samsung Electronics to 20 percent, the holding company system will be complete.

There is another option for Samsung Group - it can turn the non-listed Samsung Everland into its holding company. But in this case, Samsung Life would need to dispose of all its stakes in Samsung Electronics.

In this climate, Samsung Group faces challenges because both measures are difficult to carry out.

"Both steps are implausible for us. For now, we are not thinking of turning to the holding company system," a Samsung Group spokesman said.

Woori Financial Group, the holding company of the country's major lender Woori Bank, also has something to gain with the revised law.

Under the bill, companies will be allowed to increase their stake in banks to 9 percent starting Oct. 10 — beyond the current restriction of 4 percent.

In addition, various ownership limits placed on private equity funds will be eased so that firms will be able to jack up their indirect stake in banks even beyond 9 percent.

This is expected to boost demand for Woori when it goes on sale because industrial companies will invest money in the private equity funds, which in turn can hike stakes in banks.

Will Revised Law Help Korea Inc.?

The Financial Services Commission (FSC) has said that the revised law will prompt companies to channel fresh money into banks, which will lead to a virtuous circle.

"Manufacturers will be able to participate in the capital increase of banks afterward. This is expected to eventually prod banks to lend more back to firms," an FSC official said.

"Then, companies will have more room for investment or to hire more people, thus helping the economy recover. This is a virtuous circle," he said.

Business associations such as the Federation of Korean Industries and the Korea Employers Federation welcomed the revision of the law.

But concerns are rising over a possible conflict of interest between banks and industrial capital.

"Ever since the global financial crisis hit the world, every country has been trying to reduce the risks associated with large-sized financial outfits. But we are reversing the trend," professor Kim Sang-jo at Hansung University said.

"What the revised law intends to do is to enlarge financial firms. But size does not guarantee competitiveness. It might generate more risks by triggering conflict of interest," he said.

His logic: Influenced by increased stakes of industrial capital, banks may be forced to extend loans to unhealthy companies that are related to industrial capital. Banks may be abused as 'private safes' for chaebol, a Seoul analyst said.

voc200@koreatimes.co.kr

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