The atmosphere, however, is not that gloomy. Quite a number of enterprises have taken out investment plans that had long been shelved and are busy pushing for mergers and acquisitions. Some say that entrepreneurship has revived. Due credit should be given to President Lee Myung-bak who is taking the lead in creating a business-friendly environment.

However, there are still lingering apprehensions over the economic condition. “It’s like only the thermometer is rising in a heated room,” said Lee Dong-eung, director of the Korea Employers Federation. He meant that though the Lee Myung-bak administration presented a volley of measures, such as deregulation and the public sector overhaul, to rev up the economy, the effects of the changed environment have yet to be felt.

○ Lee’s economic policy is in the right direction

From a broad perspective, the business circle and academia are in agreement with the Lee administration’s policy direction on the economy. Many say what should be taken into consideration in judging the current government’s performance is the fact that it is inaugurated amid a deteriorating environment in the global economy that is said to be in its worst condition since the oil shock in the 1970s.

“Though the rapidly aggravating global economic atmosphere is heavily weighing on the incumbent government in dealing with economic affairs, it has succeeded in boosting the spirit of entrepreneurs and encouraging investment through business-friendly policies. This is not a small achievement,” said Lee Hee-beom, president of the Korea International Trade Association. Cho Seok-rae, chairman of the Federation of Korean Industries is in accord with the KITA chair’s opinion and expressed his confidence in the economy during his interview with the Dong-A Ilbo, saying, “Conditions are ripe for making money.”

The same goes for small and medium enterprises. “I am encouraged by the president’s comments that he would eliminate unnecessary regulations for large businesses with sufficient abilities to keep operating without help, and provide support and cooperation for smaller businesses,” remarked Sung Nak-joong, director of the Korea Federation of Small and Medium Business.

Many in the economic sector expect that visible results will come out in 2010 at the latest, if this favorable atmosphere remains unchanged. A sizable portion of entrepreneurs say the nation’s economy would have faced a catastrophe if the left-leaning government had managed to stay in power.

Lee Man-woo, a professor of business administration at Korea University, said the economy will be in a completely different condition if the new government manages to stand on its own feet, breaking free from the vestiges of the previous government. “In the 17th National Assembly, the ruling Grand National Party is still a minority. Even though the president pledges to devise policies that favor businesses, they are useless if they are not signed into law. The reform of state-run organizations is being delayed due to opposition from outside directors appointed by the previous government,” the professor pointed out.

○ Elaboration is desired in details

When going into details, many raise doubts over the incumbent government’s ability to implement and enforce policy measures.

“Though the Lee Myung-bak administration is doing a good job in identifying what caused the Roh administration to fail and set the direction of the economic policy well, it lacks the ability to devise strategies that lead to practical action plans,” said Kim Jong-seok, president of the Korea Economic Research Institute. Key policy tasks including the overhaul of the public sector and deregulation can only be achieved when the right system is put in place. The reform drive led by several of Cheong Wa Dae officials will go nowhere because it lacks elaboration and propulsive powers, according to Kim.

Some criticize the government for filling the government posts with not so practical figures. Though the president prioritizes practicality, his staff consists of mainly professors and ideologues who will likely fail to go with the current of the times, they say.

Another criticism against the current government is its poor performance in resolving conflicts that have been clearly manifested in the failure to adequately respond to the so-called mad cow scare and inability to push for the ratification of the KORUS FTA.

The government’s excessive ambition is also to be overcome.

In the market economy, price variables such as foreign exchange rates, interest rates and inflation should not be dealt with by the government. But the overly-ambitious Lee administration attempted to control them, only to amplify uncertainties,” said Kang Seok-hun, an economics professor at Sungshin Women’s University. “The public is fully aware that the world economy is in trouble. The government needs a more laid-back attitude and should explain to the public that it takes time to recover growth potential,” Kang added.

○ Reforms should avoid anticlimax

Some experts raise concerns that the ongoing controversy over the beef issue can be hindrance to the Lee administration’s reform plan and deprive the government of the momentum for reform.

“Economic reforms represented by easing regulations and revamping state-owned organizations should be pushed for in this early stage of the government. The passage of time will be an obstacle in making any progress,” said Lee Hyeon-seok, director of the Korea Chamber of Commerce and Industry.

Kim Gyeong-hwan, an economics professor at Sogang University, stressed the importance of the government’s determination to go ahead with reform, saying, “In a short term, the reform drive is expected to face market jitters and some resistance, but the government must show the people its resolve and capability.”

“Though the government advocates practicality, in the eyes of the public, it is not clear what is practical and what is not. It should firmly stick to market principles and set directions accordingly,” advised Kim Jeong-ho, president of the Center for Free Enterprise.

Lee Seung-cheol, director of the Federation of Korean Industries, said, “It’s true that the incumbent government has made some mistakes, and in some issues it did bad jobs. But it’s too early to make any conclusion. It is in the term of the 18th National Assembly where the ruling party is a majority and that we can truly assess the current government’s performance.”