PICIS Newsletter 26.1.98

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PICIS
Policy and Information Center for International Solidarity

Monday, 26 January 1998

Editor's notice

Our organisation was established for joining in the international solidarity movement against neoliberalistic attacks by the transnational capital worldwide, as well as for the practical international solidarity movement among South Korean progressive forces. We aims at not only sharing policies and information with foreign progressive organisations but also practical supporting movement with workers' and peoples' struggles, who are suppressed and exploited. This newsletter contains Korean progressive forces' activities, and through this newsletter we want to contact and make solidarity with foreign activists and make practical activity with all of you.

We will make a mailing list for a lively discussion, before it if anyone want to receive the newsletter, send us e-mail.(hanboss@mail.nownuri.net)

Korea this week

Korean's First-birthday Ring Patriotism

There are enthusiastic gold-collecting campaign in Korea these days. Over a million people have joined this campaign, which aims at buying US dollars by collecting gold, for one month. Many people bring their first-birthday rings, hundred-day rings, or medals to the banks and broadcasting centers and sell them at a lower price than original price.(In Korea there is a tradition that people give rings to the baby's parents on the baby's first birthday and one hundred day anniversary. And the parents keep the presents for a emergency or children's marriage. It is a kind of mutual aid.) But the gold bullion of the rich haven't come out yet.

Korea's air pollution is decreasing dramatically. This is because traffic got decreased after the rise of oil price. So imported cars like Benz and BMW, which rich people drive, are running speedily. But the common people uses public transportation whose fare increased 15-30%. The price of food like coffee, cooking oil, milk powder rised, but buyups by wholesalers made it impossible to use them. According to KFTU's research(Korean Federation of Trade Unions, yellow union whose members are larger than KCTU), worker's living cost this year is expected to rise at 9.3%, but considering the rise in prices living cost will increase larger. Korean workers are on the edge of layoff and wagecut, and at the same time they are met with a rising living cost.

The first-birthday ring patriotism, which would like to help in saving critical economy, is naive, but it is diluting fundamental reason of economic crisis and remitting a chaebols' sin.

Present Chaebol Reform is a Complete Fake

If we translate 'chaebol' into 'conglomerate', it would be impossible for foreign people to understand the character of Korean chaebol entirely. Korean chaebol has concentrate its property into single family through the fusion between politics and economy and octopus-like business. It is not like the big companies which have enlarged in particular sectors. These chaebols are the origin of evil that impose the responsibility of economic crisis on the people and workers. President-elect Kim Dae-jung is betraying his former 'people's economy', which focused on small and medium-sized business, and urging chaebols to reform themselves by fitting themselves with IMF bailout conditions. He even says, "The corporate who earns US dollar is government favorate companion." But reform plans of Hyundai, LG, and Samsung disappointed people who had expected at least restore of the owners' property. Instead of regret and sense of responsibility, they argues only superficial measures such as the remove from marginal business and outside directorship and so forth. This shows that government and chaebols are managing Tripartite Commission(commission for labor relation composed of government, employers, and workers) only as a timekilling. KCTU declared they would take 'signature-collecting campaign for deposition of chaebol owners and offering of their property' and protest campaign in front of Samsung Headquarters from beginning of February, saying "Workers and people are already take pain-sharing through mass layoffs, wage freeze, rise of the prices." There are many saying that layoff is inevitable. But the most inevitable measure is true economic revolution which results equal distribution of possesions.

PICIS's Opinion

Dilemma of Korean Working Class
- comment on joint declaration of labor, employers, and government

At present, Korean working class is in a acute dilemma. Although it is sure that IMF bailout conditions are originally neoliberalistic restructuring program based on the sacrifice of working class, they are accompanied by general corrections both on the chaebol system and on bureaucratic managerial economy. These have never been touched in Korean history. We can't welcome it nor oppose completely. So-called 'corrections' by the IMF's neoliberalstic program, though they will succeed, will result in deepening of subordination and more concentration of capital, which will accompany destruction of working class' living condition. Although 'layoff' is not legalized yet, there are mass layoffs and wage delay in most workplaces. But if we reject IMF's program, 'bankruptcy of Koream economy' is waiting us. Under the situation that 100 billion of short-term foreign debts, Stoppage of IMF's rescue and inflow of foreign capital would lead to delay of repayment, and in the crisis of national bankruptcy the national sovereignty will be handed over to creditor bank and nations. The dilemmatic situation of Korean labor movement is deepening with a lack of realistic alternative. In this confusion, on Jan. 20th 'joint declaration on equal pain-sharing among labor, employers, and government for the overcoming of economic crisis' was announced. This 5-item declaration contains 'measures against unemployment and for stability of employment', 'stoppage of layoffs and unjust labor measures', 'adjustment of wages and working time', 'self-restraint of strike', and 'completing of concrete action plan during special assembly session'. We think it is not important whether for or against the declaration. We understand the join in Tripartite Commission and signing in the declaration. But while buried in 'reality' of 'social contract', Korean working class must not lose alternative of future. Although labor class could insert labor's rights or welfare, it is only a starting point for the neoliberalistic program and at the same time unstable under subordinate situation. Korean working class must think about fundamental solution of present crisis and strong labor organization for that. Alternatives of future for Korean working class are, we think, 'eradication of surbodinate accumulatation system', 'changing chaebol dominant system into social and public ownership and social regulation', and 'enlargement of national or public sector' against privatization.

Notice

1. PICIS has an journal which covers foreign movements. If you have a struggles you want to inform us or need solidarity struggle, send us.

2. If you have comments or anything, contact us.