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Korea's Roh: The outsider is back in
By David Scofield

It has been two months and two days since South Korean President Roh Moo-hyun, the ultimate outsider who crashed the rusted gates of power, a poor farm boy who became a labor lawyer fighting for the disadvantaged, was impeached and ousted from office by the old guard in the National Assembly. On Friday, the Constitutional Court dismissed the impeachment and reinstated Roh as a president who has sought to distance himself from heavy-handed US influence and maintain a policy of tolerance and neighborliness toward North Korea.

The majority of the nine judges voted to reinstate Roh who was impeached on March 12, but the actual vote and minority dissenting opinions have not been disclosed. It is not known whether they will be formally released in Seoul's still nascent, often opaque democracy.

The decision was widely expected, since virtually no one, including the architects of the original impeachment motion, believed the court would uphold the vote. The grounds for the impeachment seemed weak and politically motivated to many Koreans long accustomed to extravagant levels of incompetence and corruption in nation's highest offices - in comparison, Roh's transgressions pale.

The impeachment was predicated on three charges:
  • Receiving illegal campaign funds. (Prosecutors have uncovered evidence of far greater fund irregularities among members of the conservative Grand National Party, or GNP, principal architects of the impeachment, and that Roh personally received monies has not been substantiated by the public prosecutors office.)
  • Illegal electioneering (more specifically his declaration in response to a reporter's question that he wanted "... to do everything within the law to support the OOP", the party with which he is allied but which he has not officially joined.)
  • Incompetence (arguably the strongest charge considering Roh himself has publicly declared that he was not sure he was up to the job, but self-criticism and effacement do not, it seems, an impeachment make).

    It took court president Yoon Young-chul less than 10 minutes to refute each of the three charges categorically in a prepared decision.

    The decision was not unanimous, however, with an unspecified minority holding dissenting opinions. The court has not released these minority opinions, a move incongruent with the transparency marked by this constitutional milestone. South Korea, its democracy still evolving, has for the first time since first democratic elections in 1987 had its president removed from office through a process that most of the electorate felt displayed the arrogance and high-handedness of the political elite. But South Korea's constitution proved strong and legitimate: the army was not called out and the country did not descend into chaos.

    Pro-impeachment politicians now backtrack
    But almost immediately after the impeachment was publicly overruled, some outraged voters did protest - peacefully. Pro-impeachment politicians, sensing the sea change in favor of Roh and keenly aware that their own reelection bids four weeks thence looked doubtful, began to talk about reversing the impeachment vote. Such a move, if successful, would have deeply perverted the post-political constitutional process that has been, outwardly at least, relatively free of political influence.

    The National Assembly elections on April 15 - widely seen as a referendum on Roh and on his impeachment - gave Roh and his favored Our Open Party (OOP) a legislative majority. Immediately afterward, Chung Dong-young, the leader of the OOP, began openly discussing how to reverse the impeachment vote, effectively removing the matter from those constitutionally mandated to rule on its validity. Fortunately, the leader of the major conservative opposition GNP, Park Gun-hye, rejected the proposal - a win for the constitution and due process in South Korea.

    But the decision of the Constitutional Court not to release the minority opinions is troubling, especially after the much-publicized OOP comments that releasing all the opinions would undermine national unity. Through the questionable impeachment on dubious grounds, South Korea took a step away from "rule by law" and more firmly embraced "rule of law", a rare example of law trumping politics in Korea. The decision to exclude dissenting opinion, a political decision thinly veiled by tired declarations of national unity, stands in contrast to the success of the process - the ultimate reinstatement based on evaluating the questionable, politically motivated charges and evidence. In the end, political agendas threaten to distort the transparency and validity of the system.

    Long work agenda awaits
    With the president reinstalled, South Korea's democracy has weathered its most serious challenge ever - but reinstatement is just the first hurdle for this administration. Labor strife continues to dog the government and the nation, as the OOP looks increasingly trapped by its own everything-for-everyone rhetoric: it promises to ensure wage growth and job security and to extend further rights for the nation's unionists, while also speaking pro-business rhetoric, including increased labor flexibility, to the nation's business lobby. And it talks tough on Japan and increasing independence from Washington. Roh's reinstatement and his firm control of over the assembly will have no doubt caught the attention of the Americans as their troop presence (they currently maintain about 37,000 troops throughout South Korea) encourages increasing animosity from the Korean people, but has become a convenient political tool for a country that still hasn't reconciled independent defense and its North Korea rapprochement issues.

    The reality is that South Korea needs to establish stability, predictability and transparency in its political/economic and business systems, sentiments echoed in this week's 14th Asian Corporate Conference in Seoul, and not simply institute more stopgap measures designed to tide the country over while the nation waits anxiously for the next crisis. The leadership needs to act decisively, and with an OOP majority in the National Assembly there is no reason well-designed progressive policies cannot be enacted. No reason, except the nation's perennially risk-averse elected officials.

    It's the economy's shrinking growth potential, and not fears of political instability, that is having the most profound effects on stability in the country. This is evidenced by the radical fluctuations in the Korean bourse, sent spiraling downward this week on news that China, South Korea's key export destination and target for US$2.5 billion in Korean investment last year, will tighten its monetary policy in the hopes of gradually deflating the bubble that is the Chinese economy. The less than 4 percent drop that initially followed the impeachment was mild in comparison.

    With domestic consumption in South Korea still hampered by massive levels of household debt, China has been the nation's sole engine of growth. China's growth, which absorbed 50 percent more Korean exports last year than the previous year, kept South Korea out of recession. With that engine slowing, there is little indication where the next growth engine will come from.

    Cho Yoon-je, the president's adviser for economic affairs, has been emphatically repeating Roh's commitments to economic reforms, reforms that have come much slower than the promises that came flooding forth in the months and now years since the country came a hair's breadth from sovereign default in late 1997. In meetings in the southern island of Jeju, Cho recently declared that the government would "make all-out efforts to make the market more open, fair and transparent".

    Corporate corruption alive and well
    But ironically on March 12, the same day Roh was impeached, shareholders of SK Corp - including government-controlled banks and the National Pension Corp - voted to retain Chey Tae-won as the head of the nation's largest oil refiner. Chey was convicted last spring of embezzling and defrauding the company of more than $1.5 billion. James Fitter, president of Sovereign Asset Management, the largest single shareholder of SK Corp stock and a strong proponent of massive management restructuring at SK, maintains as much as $3.7 billion was "lost" through SK Networks while Chey, the son of SK's founder, was at the helm. Chey has been sentenced to jail but released on bond as he awaits an appeal of the conviction.

    Unlike other industrialists in the US and Europe who are serving jail sentences, Chey is not only free on bail, but back running the company he was convicted of defrauding. It's hard to see how offering tacit government support to an individual convicted of embezzling and defrauding billions to retain control over the de facto holding company of a multibillion-dollar firm is consistent with the "transparent accounting standards as well as stronger action against misreporting, embellishments of reports and misconduct by managers" that Cho Yoon-je asserts now typify South Korea's financial institutions and companies.

    With an absolute majority in the National Assembly, President Roh now has the political clout he has long declared crucial to legislating reform in South Korea: politically, socially and economically. But his actions will have to match his rhetoric more closely if the economy and the country are to move away from erratic, poorly implemented policies, opaque decision-making, and tacit support for nativistic business practices - and move toward stability, balanced growth and development throughout the nation.

    David Scofield, former lecturer at the Graduate Institute of Peace Studies, Kyung Hee University, is currently conducting post-graduate research at the School of East Asian Studies, University of Sheffield.

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  • May 15, 2004



    Seoul's new political landscape worries US
    (May 7, '04)

    Big victory for impeached President Roh
    (Apr 17, '04)

    Anti-impeachment rallies draw middle class
    (Mar 25, '04)

     

     
       
             
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