A Good Start for S. Korea’s Kim

Kim Dae Jung won’t take the oath as South Korea’s president for another two weeks, but without challenge he has been his country’s leader since his election in late December. Partly that’s because incumbent President Kim Young Sam, widely blamed for failing to head off the economic debacle that brought South Korea’s booming economy to a virtual standstill, has taken a deliberately humble posture as he prepares to step down. Mainly, though, it’s because Kim Dae Jung--D.J., as he is known, to separate him from the multitude of other Kims in public life--is seen as the key to preserving Korea’s stability and guiding its return to prosperity. The statesmanship he has exhibited during the interregnum inspires confidence at home and abroad.

South Korea, with D.J. and his minority coalition in the National Assembly leading the way, is now well started on implementing the reforms urged by the International Monetary Fund as conditions for the $60-billion bailout it has arranged. In time those changes will make South Korea’s economy stronger and more competitive. The power and corrupting political influence of the huge and--as it has become clear--vastly overbuilt conglomerates known as chaebol are being curbed. Though some rank-and-file opposition remains, the militant labor unions have agreed to give up what had been a virtual assurance of lifetime employment in exchange for a greatly improved social safety net. And the economy has been opened as never before to foreign investment.

The full pain of this drastic restructuring has yet to be felt. Unemployment could double within a few months, bankruptcies are likely to soar, inflation will increase. But Koreans are a hardy people, used to sacrifice and deservedly proud of what they have accomplished over the last quarter-century. While strikes and angry demonstrations are inevitable, the outlook for fairly rapid recovery and renewed prosperity seems bright.

Kim Dae Jung has spoken candidly to Koreans about the hardships they face. He has won pledges of support from even some of his bitterest erstwhile enemies. Formidable tests lie ahead, but a good beginning has been made, and the right course has been set.