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Strategies & Market Trends : Asia Forum -- Ignore unavailable to you. Want to Upgrade?

To: Stitch who wrote (2178)	2/15/1998 9:01:00 PM
From: Mohan Marette	Read Replies (1) \| Respond to of 9980

News from Korea: 18 new legislations to help the reform process. Stitch and all: In case y'all haven't heard about this news: ---------------------------------------------------------------- Source: Korea Times Layoff Allowed in New Legislation 02/15 17:33 * Nat'l Assembly Passes 18 Reform Bills By Kim Yong-bom Staff Reporter The National Assembly finally passed the layoff bills Saturday, clearing the way for businesses to shed their workforce without a grace period, along with 17 other bills to help the economic restructuring of the nation. The permit of layoffs, designed to guarantee the flexibility of the labor market, is one of the key conditions attached to the IMF bailout program. Until now, layoffs were possible only after the approval of labor unions or the court. With legalized layoffs, employers are now able to dismiss workers in mergers and acquisitions, and other cases of the dissolution of companies. In a measure to check the possible abuse of the permit by employers, a strict condition was attached that requires management to notify unions of its plan to dismiss workers at least 60 days ahead of time. In return for the legalized layoffs, the new labor bills provided a package of measures to extend financial assistance to the unemployed, including the allocation of 6 trillion won in the name of the ''job security fund.'' The new legislation also set up a 2.8-trillion-won fund for allowances for the unemployed. The measures to make the labor market flexible also included the permit for employers to use an alternative workforce to their regular staff, but limited it to skilled manpower. Among the 17 other bills to help economic restructuring is the bill opening the way for hostile mergers and acquisitions of local businesses by foreign investors. The new bill on the introduction of foreign capitals and trade of shares raise the stock ceiling for foreigners, set now at one-tenth, to one-third. Hostile M&As by foreigners are scheduled to be permitted within 10 months by a presidential decree. To facilitate mergers and acquisitions among local businesses as well, the new bills provided tax breaks for the takeover of businesses. In a measure to reform family-run conglomerates, or chaebol, the bill on anti-trust and fair trade banned the practice of cross-payment guarantees among chaebol subsidiaries. The House, meanwhile, failed to translate other reform programs into legislation, due to the tense standoff between the rivalling parties up to the last minute Saturday. The incoming coalition ruling camp of the National Congress for New Politics and United Liberal Democrats clashed with the majority Grand National Party over the two controversial issues of how to restructure the government and whether to introduce confirmation hearings. The main bone of contention was the control of the budget bureau, with the NCNP insisting that Chong Wa Dae take it over, while the GNP stood against it. The House also failed to pass the supplementary budget for this year, as the majority GNP balked at its passage. The deliberation on the budget was shelved to the next House session after the next government takes office next week. The GNP, for its part, unilaterally presented the bill on introducing the confirmation hearings for the Cabinet lineup of Kim Dae-jung's administration, ignoring the NCNP's objection. However, the majority camp refrained from railroading the bill through the House. For further negotiations on the controversial issue, which is tied to the premiership of ULD leader, Kim Jong-pil, the rival camps agreed to lengthen the extraordinary House session two days, ending tomorrow. It is not certain yet whether the rival camps can reach an agreement on the confirmation procedure within the ongoing House session, as both sides refuse to compromise on the issue.