TIME Asia | A Government by the People

	SOUTH KOREA	MARCH 2, 1998 VOL. 151 NO. 8
A Government by the People Kim Dae Jung on what he wants for his country On the eve of his inauguration, South Korea's dissident-turned-President, Kim Dae Jung, sat down with TIME correspondents for a 90-minute interview in the Seoul headquarters of his transition team. Though he lacks the outward fire of his earlier days as a radical critic of successive Korean military regimes that wanted him killed, the 73-year-old Kim spoke passionately of his plans to revitalize the economy, shake up the country's powerful business and political interests and forge a breakthrough in relat ions with the North. Excerpts from the interview: TIME: You've come a long way from imprisoned dissident to elected leader. Did you ever imagine you'd be President? Kim: I always had hope. But if I had not been elected President, I would not have been disappointed with what I have done. Someone who stands for liberty and justice can never fail. Though they may be looked upon as failures during their lives, but histor y will always judge them winners. I have faced death five times, spent six years in prison and 10 years in exile, but I never lost my faith, physically or mentally. TIME: What's your biggest ambition for the next five years? Kim: The most pressing issue is providing the foundation to overcome the financial crisis. Second, we need to implement democratic and economic development so we can become a successful model for other countries. I intend to tear down the dogma pervasive in Asia that democracy is not helpful for economic development. Lastly, I hope South and North Korea can end military confrontation and create peace on the peninsula and build a foundation for a society where 70 million Koreans can feel safe and help each other. TIME: Will you take a leading role in Asia promoting human rights? Kim: My struggle for human rights and my success in the political arena will have tremendous influence in Asia. Especially in China. Chinese newspapers and television for many years reported a lot about me, so many Chinese know me well and admire me. My r ecent success will have a good influence over there. TIME: How important is democracy to economic development? Kim: I think Asia's economic crisis stems mainly from a lack of democracy. In democratic countries there is not the same kind of collusion between businessmen and the government. If we develop both democracy and a market economy, we can expect successful results in the near future. TIME: What can be done to make Korea a more effective democracy? Kim: First, as the election proved, a government has to be by the people, so that participatory democracy can be realized. Second, we must seriously implement a market economy so that only those companies and businesses that can compete will survive. We m ust also nurture small and medium-sized businesses and the middle class, the foundation that can bolster the roots of democracy. Third, we need to stress morality. We should build a society where honest, capable and diligent people succeed and those who a re not fail. TIME: How can you reduce the role of the powerful chaebol? Kim: We have no specific hatred toward the chaebol. But I believe our current economic problems come from factors such as collusive ties between business and politics, the monopoly of finance through government-controlled arrangements and indiscriminate e xpansion of businesses. When I met recently with the chaebol, I told them I would welcome them if they adhere to market principles and are competitive. I asked them to reform their financial structure and establish transparency so that everybody inside and outside of Korea will believe their financial statements. I told them that I don't favor or disfavor any particular company. I would like everyone that produces the cheapest and best goods to be winners in international competition. If not, I am sorry to say, they must disappe ar. Such reforms would not even be thinkable without the IMF's provisions. It would have been very difficult to achieve them because the chaebol would have resisted. So I am determined to utilize the IMF's reform provisions to transform our economic system so we can prepare to rebound in the 21st century. This is a blessing in disguise for us. TIME: Is the worst over? Kim: It is too early to say that. If we want to overcome our crisis, first we must implement our historic "Grand Compromise" among labor, business and government so we can build a system where all of Korea cooperates. As far as our financial crisis is con cerned, we were only able to temporarily roll over short-term debts to long-term, and so the problem could always come back. The most effective way to overcome the crisis is to attract foreign investment quickly. But not enough foreign investors have come so far. TIME: Which of the IMF guidelines is the hardest to carry out? Kim: High interest rates, which now stand at 20% to 25%. With such rates, even very solid companies will go bankrupt within six months. TIME: Should the U.S. begin to pull some of its troops out of Korea? Kim: The issue of U.S. troops in Korea must be examined from two perspectives. One, whether the threat from North Korea has been reduced. Any decline in that threat could be a reason for a troop reduction, but we are not at that stage yet. Second, U.S. tr oops in Korea and Japan play a critical role in maintaining peace and the balance of power in Northeast Asia. If they withdraw, we could see a hegemonic struggle between powers like China and Japan. TIME: Twice the U.S. government saved your life. Are you, and Korea, indebted to America? Kim: It cannot be described in terms of a debt. Rather, I believe that, if not for the noble spirit of human rights that the U.S. upholds, I would not be alive today. I also believe that cooperating with the U.S. coincides with our own national interest. So during my five years in office, I will maintain a very good relationship with the U.S., unlike past Korean presidents. TIME: What would be required to achieve good ties with Japan? Kim: It is not that Koreans hold a historical grudge against Japan. Koreans feel that the Japanese pose a danger only as long as they do not fully repent their past wrongdoings. Japan's attitude is very different from that of Germany. Germans recognized t hey were responsible for World War II, apologized and then made compensations. Moreover, they have been educating their citizens about what they did wrong in the past. This is why their European neighbors feel secure and trust them. TIME: Is the time ripe to move toward a closer relationship with North Korea? Kim: I think peace, reconciliation and cooperation between South and North is more important than the issue of unification. South and North Korea consummated an agreement in 1991 in which we agreed on such priorities. If we can implement this, we can reso lve all inter-Korean issues--except unification. I think it's possible to consider summit meetings in Seoul and Pyongyang. TIME: Do you think North Korea is becoming more dangerous or less? Kim: There are differing views on that. Certainly, South Korea, the U.S. and Japan should help North Korea with certain things via close consultations while we firmly deter any aggression. We also must let North Korea know very clearly that we have absolu tely no intention to overthrow their system. Then we should gradually induce North Korea to a dialogue. When we adopt moderate attitudes, the likelihood of moderate forces in North Korea gathering strength and eventually ushering in change is high. TIME: Is Korea globalizing fast enough? Kim: We have to do more. Koreans were under Japanese occupation for a long time, and this made Koreans overly suspicious of foreigners. On Jan.18, I held a "town meeting" with citizens on nationwide television. One student asked me whether introducing fo reign capital would lead to Korea's colonization. I replied that the 21st century would be the era of the global economy, unlike the national economic system of the past. This means we will have to compete and cooperate to survive. Once foreign capital fl ows into Korea, it becomes our capital. And the factories it builds become our factories. TIME: How can you reduce the level of corruption in Korean society? Kim: First, we will reduce government interference. Winners will be decided by the rules of the market economy. The era of businessmen aligning with powerful government people is over. Last year, we amended laws on political funding. In the past, business es could give out political funds via the Central Election Committee, and they gave only to the ruling party. During a recent meeting with businessmen, I asked them to give funds to both parties. I told them that even if they provide funds to the oppositi on they won't be in trouble, as long as the funds are provided legally. TIME: During the campaign there were charges that you yourself had taken improper political donations. Kim: The opposition party fabricated the allegation during the election campaign. I have asked the prosecutor to look into it, and the investigation is still going on. TIME: Which individuals have been your main sources of inspiration? Kim: One is China's Mengzi [Mencius], who lived 2,300 years ago and spoke of democratic values. Another is Chun Bong Joon, a 19th century Korean revolutionary leader who mobilized 200,000 farmers to rise against feudalism and Japanese power. He wanted to modernize Korea but failed as Japan intervened. And I admire Abraham Lincoln and his spirit of tolerance, forgiveness and inclusiveness. I was able to forgive ex-Presidents Chun and Roh, who tried to kill me, because of Lincoln's influence. After the Nort h''s win in the U.S. civil war, Lincoln forgave the people of the South, saying "Malice toward none and charity for all." Photograph by TOM WAGNER--Saba for TIME
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Kim Dae Jung on what he wants for his country

On the eve of his inauguration, South Korea's dissident-turned-President, Kim Dae Jung, sat down with TIME correspondents for a 90-minute interview in the Seoul headquarters of his transition team. Though he lacks the outward fire of his earlier days as a radical critic of successive Korean military regimes that wanted him killed, the 73-year-old Kim spoke passionately of his plans to revitalize the economy, shake up the country's powerful business and political interests and forge a breakthrough in relat ions with the North. Excerpts from the interview:

TIME: You've come a long way from imprisoned dissident to elected leader. Did you ever imagine you'd be President?

Kim: I always had hope. But if I had not been elected President, I would not have been disappointed with what I have done. Someone who stands for liberty and justice can never fail. Though they may be looked upon as failures during their lives, but histor y will always judge them winners. I have faced death five times, spent six years in prison and 10 years in exile, but I never lost my faith, physically or mentally.

TIME: What's your biggest ambition for the next five years?

Kim: The most pressing issue is providing the foundation to overcome the financial crisis. Second, we need to implement democratic and economic development so we can become a successful model for other countries. I intend to tear down the dogma pervasive in Asia that democracy is not helpful for economic development. Lastly, I hope South and North Korea can end military confrontation and create peace on the peninsula and build a foundation for a society where 70 million Koreans can feel safe and help each other.

TIME: Will you take a leading role in Asia promoting human rights?

Kim: My struggle for human rights and my success in the political arena will have tremendous influence in Asia. Especially in China. Chinese newspapers and television for many years reported a lot about me, so many Chinese know me well and admire me. My r ecent success will have a good influence over there.

TIME: How important is democracy to economic development?

Kim: I think Asia's economic crisis stems mainly from a lack of democracy. In democratic countries there is not the same kind of collusion between businessmen and the government. If we develop both democracy and a market economy, we can expect successful results in the near future.

TIME: What can be done to make Korea a more effective democracy?

Kim: First, as the election proved, a government has to be by the people, so that participatory democracy can be realized. Second, we must seriously implement a market economy so that only those companies and businesses that can compete will survive. We m ust also nurture small and medium-sized businesses and the middle class, the foundation that can bolster the roots of democracy. Third, we need to stress morality. We should build a society where honest, capable and diligent people succeed and those who a re not fail.

TIME: How can you reduce the role of the powerful chaebol?

Kim: We have no specific hatred toward the chaebol. But I believe our current economic problems come from factors such as collusive ties between business and politics, the monopoly of finance through government-controlled arrangements and indiscriminate e xpansion of businesses.

When I met recently with the chaebol, I told them I would welcome them if they adhere to market principles and are competitive. I asked them to reform their financial structure and establish transparency so that everybody inside and outside of Korea will believe their financial statements. I told them that I don't favor or disfavor any particular company. I would like everyone that produces the cheapest and best goods to be winners in international competition. If not, I am sorry to say, they must disappe ar.

Such reforms would not even be thinkable without the IMF's provisions. It would have been very difficult to achieve them because the chaebol would have resisted. So I am determined to utilize the IMF's reform provisions to transform our economic system so we can prepare to rebound in the 21st century. This is a blessing in disguise for us.

TIME: Is the worst over?

Kim: It is too early to say that. If we want to overcome our crisis, first we must implement our historic "Grand Compromise" among labor, business and government so we can build a system where all of Korea cooperates. As far as our financial crisis is con cerned, we were only able to temporarily roll over short-term debts to long-term, and so the problem could always come back. The most effective way to overcome the crisis is to attract foreign investment quickly. But not enough foreign investors have come so far.

TIME: Which of the IMF guidelines is the hardest to carry out?

Kim: High interest rates, which now stand at 20% to 25%. With such rates, even very solid companies will go bankrupt within six months.

TIME: Should the U.S. begin to pull some of its troops out of Korea?

Kim: The issue of U.S. troops in Korea must be examined from two perspectives. One, whether the threat from North Korea has been reduced. Any decline in that threat could be a reason for a troop reduction, but we are not at that stage yet. Second, U.S. tr oops in Korea and Japan play a critical role in maintaining peace and the balance of power in Northeast Asia. If they withdraw, we could see a hegemonic struggle between powers like China and Japan.

TIME: Twice the U.S. government saved your life. Are you, and Korea, indebted to America?

Kim: It cannot be described in terms of a debt. Rather, I believe that, if not for the noble spirit of human rights that the U.S. upholds, I would not be alive today. I also believe that cooperating with the U.S. coincides with our own national interest. So during my five years in office, I will maintain a very good relationship with the U.S., unlike past Korean presidents.

TIME: What would be required to achieve good ties with Japan?

Kim: It is not that Koreans hold a historical grudge against Japan. Koreans feel that the Japanese pose a danger only as long as they do not fully repent their past wrongdoings. Japan's attitude is very different from that of Germany. Germans recognized t hey were responsible for World War II, apologized and then made compensations. Moreover, they have been educating their citizens about what they did wrong in the past. This is why their European neighbors feel secure and trust them.

TIME: Is the time ripe to move toward a closer relationship with North Korea?

Kim: I think peace, reconciliation and cooperation between South and North is more important than the issue of unification. South and North Korea consummated an agreement in 1991 in which we agreed on such priorities. If we can implement this, we can reso lve all inter-Korean issues--except unification. I think it's possible to consider summit meetings in Seoul and Pyongyang.

TIME: Do you think North Korea is becoming more dangerous or less?

Kim: There are differing views on that. Certainly, South Korea, the U.S. and Japan should help North Korea with certain things via close consultations while we firmly deter any aggression. We also must let North Korea know very clearly that we have absolu tely no intention to overthrow their system. Then we should gradually induce North Korea to a dialogue. When we adopt moderate attitudes, the likelihood of moderate forces in North Korea gathering strength and eventually ushering in change is high.

TIME: Is Korea globalizing fast enough?

Kim: We have to do more. Koreans were under Japanese occupation for a long time, and this made Koreans overly suspicious of foreigners. On Jan.18, I held a "town meeting" with citizens on nationwide television. One student asked me whether introducing fo reign capital would lead to Korea's colonization. I replied that the 21st century would be the era of the global economy, unlike the national economic system of the past. This means we will have to compete and cooperate to survive. Once foreign capital fl ows into Korea, it becomes our capital. And the factories it builds become our factories.

TIME: How can you reduce the level of corruption in Korean society?

Kim: First, we will reduce government interference. Winners will be decided by the rules of the market economy. The era of businessmen aligning with powerful government people is over. Last year, we amended laws on political funding. In the past, business es could give out political funds via the Central Election Committee, and they gave only to the ruling party. During a recent meeting with businessmen, I asked them to give funds to both parties. I told them that even if they provide funds to the oppositi on they won't be in trouble, as long as the funds are provided legally.

TIME: During the campaign there were charges that you yourself had taken improper political donations.

Kim: The opposition party fabricated the allegation during the election campaign. I have asked the prosecutor to look into it, and the investigation is still going on.

TIME: Which individuals have been your main sources of inspiration?

Kim: One is China's Mengzi [Mencius], who lived 2,300 years ago and spoke of democratic values. Another is Chun Bong Joon, a 19th century Korean revolutionary leader who mobilized 200,000 farmers to rise against feudalism and Japanese power. He wanted to modernize Korea but failed as Japan intervened. And I admire Abraham Lincoln and his spirit of tolerance, forgiveness and inclusiveness. I was able to forgive ex-Presidents Chun and Roh, who tried to kill me, because of Lincoln's influence. After the Nort h''s win in the U.S. civil war, Lincoln forgave the people of the South, saying "Malice toward none and charity for all."

Photograph by TOM WAGNER--Saba for TIME