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This real-name financial transaction system, which was put into effect by an emergency presidential decree on August 12, 1993 is the core of the entire reform movement, “the reform of all reforms.” This reform is helping eradicate misconducts and realize economic justice by rectifying the distorted economic structure and income distribution caused by underground economic activities and real estate speculation and by cutting shady financial ties between politicians and businessmen. In order to join the ranks of advanced countries, Korea must eradicate the corruption and irregularities stemming from certain aspects of past administrations’ pursuance of rapid growth-oriented economic development.

With the introduction of the real-name financial transaction system, all financial dealing have become transparent, underground economic dealings have diminished, and nonproductive land speculation has been curbed. The funds that were channeled into political circles in the past as a result of government-business collusion are now being invested in business activities.

As a result drastic changes are occurring in political, economic and social activities in virtually every sector of Korean society. Business investment is actively increasing, and the past distorted economic structure and income distribution is being rectified.

President Kim’s declaration not to receive any money from businesses so as to maintain a clean government and to build a clean society, combined with his political philosophy, laid the foundation for the introduction of the real-name financial transaction system. The success of the real-name financial transaction system is serving as a stepping-stone to a New Korea.

Reform Legislation Promoting Clean Polities and Participatory Democracy

As President Kim’s urging, a package of three political reform bills was unanimously passed by the National Assembly on March 24, 1994. Marked by heavy penalties for offenders, the Law for Electing Public Officials and Preventing Electoral Irregularities is designed to ensure the transparency of campaign financing, limit campaign expenditures while encouraging freer campaigns, and ban “premature electioneering,” as well as all other electoral misconduct. The amended Political Fund Law is intended to control fund raising by political parties and individual politicians with the aim of stamping out “money politics” and “politics-business collusion,” while encouraging relatively small contributions by individuals and groups to the coffers of the parties or politicians that they support. Together, these two laws are aimed at ensuring free, fair, clean and frugal politics in general. The revised Local Autonomy Law provides for the election of the chief executives of local governments in addition to the local councils already instituted in 1991 to restore local autonomy after a 30-year hiatus.

Under the new Local Autonomy Law, four kinds of local elections are scheduled to be conducted on June 27, 1995, to choose 15 provincial governors and metropolitan mayors, 866 members of provincial and metropolitan councils, 260 city mayors, country executives and municipal district chiefs, and 4,304 members of lower-level local councils - for a total of 5,445.

In line with the key goals of President Kim’s political reform, the enforcement of these new laws will enhance the ability of Korean citizens from all walks of life to more fully participate in the democratic political process.

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