Kim Dae Jung

On Dec. 19, 1997, Kim Dae Jung was elected president of South Korea, a triumphant victory for a freedom fighter, in the tradition of other recent dramatic journeys from prison to presidential mansion: He follows in the footsteps of Nelson Mandela of South Africa and Lech Walesa of Poland.

Kim is the first opposition candidate elected since South Korea was founded in 1948, but he has had little time to enjoy the fruits of his triumph. Just as he won, the country faced its greatest crisis since the Korean War--the economic threat of national bankruptcy.

Born in 1925, on a small island off Mokpo, Kim grew up on a farm owned by a Japanese landlord who employed his father as a tenant farmer. He attended a commercial high school and joined a shipping company owned by another Japanese. When the war ended and the owner returned home, Kim took over the business. But he soon turned to politics, winning a seat in the National Assembly in 1960, only to have his political career thwarted by Park Chung Hee’s military coup in 1961.

In 26 years of political activity, always championing democracy, Kim narrowly lost the presidential election in 1971 to Park Chung Hee and since has battled a series of dictators who kidnapped, arrested, imprisoned, tortured, exiled and attempted to murder him. From jail he wrote a letter to his son, asking his forgiveness because no family would permit their daughter to marry him and no firm would give him a job.

A month before officially taking office, Kim is already running the country. Foreign visitors, ranging from key Japanese politicians to financier George Soros, are bypassing lame-duck President Kim Young Sam, who appears stunned by the financial crisis that has befallen his country, and flocking to meet with Kim Dae Jung. Kim has already taken firm steps to support the rigid conditions imposed by the International Monetary Fund, whose multimillion-dollar bailout has saved Korea from bankruptcy. As one of his first steps, he moved Kim Young Sam to release the two former presidents who had once jailed him and were themselves imprisoned.

In his first interview since his election, Kim Dae Jung pledged to practice a free-market system that would guarantee the safety of foreign investment; he predicted that the economy might recover in 18 months if 30% of workers were laid off and if the family-owned conglomerates changed their practices. He vowed to bring about closer ties with Japan and the U.S., while seeking a dialogue with North Korea.

And while most other Asian leaders, faced with similar crumbling economies, argue that their countries follow “Asian values,” which cannot fully develop under a Western-style, free-market economy or democracy, Kim remains an fervent advocate of liberal democracy as the “basic ingredient” of economic development.

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Question: You have been through a lot these past 26 years. How does it feel now to be finally elected president?

Answer: From that very day, I have been busy with the International Monetary Fund problem. So I have had no time really to enjoy it.

Q: You met with George Soros and will be talking to other large investors. I assume they are wondering whether to keep their investments here and look upon you to help them decide. What is your message to them?

A: The main purpose of such meetings has been to induce and encourage foreign investors, including Mr. Soros, to continue their investment in Korea. They are feeling somewhat shaky and in danger because they are wondering what our new government will do, what kind of practices we will follow. I have been reiterating that I am going to practice the free market system. I assure them that I shall guarantee the safety of foreign investment in Korea. I wish to encourage and induce them to continue their investment in Korea. Foreign banks are being similarly encouraged by me to provide us with long and short term loans.

Q: Did you foresee any of South Korea’s economic problems during the campaign, or even before?

A: Frankly speaking, I didn’t expect such a serious problem, but I continuously warned the Korean government to take some emergency measures about the problems such as the need to bring about financial reforms, as well as properly handle the Kia [auto] company problem and stock market issues. The government, however, didn’t heed my advice or warnings; it disregarded every one of my proposals. They were too optimistic about resolving these problems.

Q: What is the major thing that could bring South Korea back to a straight path of economic solvency and development?

A: First, we have to cooperate with the International Monetary Fund very positively, and secondly be guided by the World Trade Organization. We have to keep pace with international standards, we must open our markets, and it should be based on the free market system. Reform measures are necessary. There is no single formula at the present moment to deal with the Korean situation.

Q: You are faced with two major problems. One is labor, which supported you. The workers are afraid of being laid off and were counting on you for job security. The other is the xenophobic nature of Koreans. They don’t want foreigners taking over their economy. How can you avoid one or the other or both?

A: These are difficult problems I have to solve. As far as the unemployment, I am trying my best not to produce so many unemployed; we are consulting with the employers, but layoffs are inevitable. So I am considering retraining programs and unemployment insurance--things we haven’t done much before . . . .

Q: What about the foreign control of Korean companies?

A: We face such a dilemma as well and must balance between two choices: If we don’t lay off any workers we will be in big trouble. And if we don’t open our market to foreign investors, then our industries will die out. So, we must induce foreign investors to Korea. If we lay off 30 workers out of a hundred and keep 70 employed, at least 70 will still work and we can retrain the rest as we restore our economy. I also aim to persuade the Korean people that the world has changed. We are living in a globalized economy. We must begin to compete with foreign companies; even the small mom-and-pop store in Korea must compete with the huge American grocery stores.

Q: When do you foresee economic recovery in Korea?

A: If we follow all the IMF advice, I believe we can begin to recover in about one and a half years. This is a simple estimate and depends on how hard we work.

Q: To what do you attribute that this was the moment you finally won office?

A: Largely, I believe the Korean people wanted to change Korean society. After 50 years of living under one ruling party, they wanted a democratic transition to my party and their cherished desire came true this time. Secondly, they saw me as a well-prepared leader. At this moment in time, faced with this serious situation, they felt a capable leader is necessary for the future of Korea. So they voted for me.

Q: Have you ever considered the years of arrest and isolation were a blessing in disguise, to prepare you for the presidency? Did it give you a chance to reflect and develop a philosophy that can support you spiritually in the next years?

A: I believe it was God’s grace that gave me such a good opportunity to read and prepare for the future of leading this country. I felt a heavy burden and responsibility after I was elected. But as you mentioned, the past trials and agony have contributed to my future leadership, as I used those periods of time to read and prepare for problems that face me now.

Q: What changes do you anticipate making in, for example, the KCIA (Korea Central Intelligence Agency)-type of surveillance. They still follow people, tap phones, open mail. Will this continue?

A: National-security agencies, by nature, must be loyal to the president. They must be restored to their original function. I will expect them to collect information to promote the Korean economy and to help our security in maintaining peace in Northeast Asia. But I will warn and restrain them not to be involved, as they have in the past, in domestic politics, which harmed and hindered democratic development. Wire tapping and opening mail is illegal. I will ban those practices.

Q: How about political prisoners who remain in jail? Will you free some of them?

A: In due time, I will review the prisoners--particularly those who obey the law, who are not following the communist doctrine, and who do not advocate violent force. I will consider them very carefully and seriously.

Q. To rationalize the economy do you plan to take any harsher actions against the chaebols [large family-run conglomerates], which have received favorable treatment from the government? In the past, they relied a great deal on government favors--such as allowing them to get into certain industries or provide them loans.

A: The main concern is to keep pace with international standards in the business practices, which includes chaebols as well as small and medium-sized corporations. The chaebols are already aware that they will have to change their practices to keep pace with international standards. Past governments received donations from them and returned favors. Our government doesn’t owe anything to the chaebols. We never received any particular donations or special favors so we will go by what the law dictates. If they are competent, qualified and eligible, there is no problem, they can do it. There is free competition. There no longer exist any strong ties between the government and the chaebols; we now are free to follow legally-framed practices. You can imagine the change.

Q: In the arena of foreign relations, how do you view your relationship with the United States and Japan? Do you foresee any policy changes?

A: There will be no change. Rather, we will only be closer. Kim Young Sam created a problem by failing to maintain close cooperation with the U.S. and Japan, and this gave room to North Korea to drive a wedge between Korea and the U.S., and Korea and Japan. This is very regrettable. I must now restore close ties with the U.S.--especially the U.S.--and with Japan. Without the presence of American troops, there wouldn’t be any political stability nor military balance of power. The presence of U.S. troops will continue for the national interest of both the U.S. and Korea.

Q: What is your attitude toward North Korea? After your election you proposed a meeting with Kim Jon Il. Can you talk more concretely about what your aims are in improving relations with the North?

A: The basic aim is to try to open dialogue between North and South. Secondly, we would like them to respect and honor the basic agreement that was signed between the two entities in 1992, starting from the end of 1991. That includes a good agreement between the North and South sides. I am constantly emphasizing these are the two key points. It is somewhat different from Kim Young Sam’s practice. We now await their response. It is my constant position and idea which has never changed.

Q. Don’t you have any new approach?

A: We will, for the time being, watch North Korea’s attitude and how they behave. I already expressed my desire to have a dialogue with North Korea, so I’m watching for their response. This is the proper position at this moment in time.

Q. The North Koreans have been proposing the creation of a Korean federation where they would keep their system and South Korea would keep its system, but you would live under one umbrella as an ethnic nation. Is this acceptable?

A: Unification is not the first issue. Realization of peace on the Korean Peninsula and exchanges on humanitarian affairs and economic problems are necessary. After having such faith, we can begin to think of unification. The important first step is peace and exchange.

Q: Can you give me your assessment of your predecessors--Park Chung Hee, Chun Doo Hwan and Kim Young Sam?

A: My predecessors, the past presidents, I believe they were trying their best, but the record shows they didn’t contribute much to Korean history. At this moment in time, when the Korean people elected me, it indicates they didn’t approve the past practices of those presidents. The people now wish to see a new president opening up new politics in Korea. In the past, the leaders and people considered economic development, prosperity, as the most important, ultimate goal while democracy and human rights were sacrificed. I always maintained that economic and democratic development must go together. Now they have elected me and I will pursue both, hand-in-hand.

Q: What advice then do you give those Asian leaders who talk about Asian values and Asian-style democracy?

A: Democratic stabilization is the basic ingredient for economic prosperity. Democracy is key to maintaining sound economic development. If we had had a democratic system in the past, then there would be no corrupt connection between businessmen and political power, no government-controlled economy, and also no wrongdoing of businessmen. A major cause of our economic failure today comes from lack of democracy in this country.