Over 60 years, the Republic of Korea (ROK) has been led by a tireless independence fighter, hard-nosed generals and dedicated advocates of democracy, human rights and reconciliation with the North.

Now, for the first time, a man who made his name in the corporate boardroom is about to become president of a country occasionally dubbed Korea Inc for the influence big business has played in its development.

Lee Myung-bak, set to start a single five-year term on Monday, inherits an economy that grew nearly 5 percent last year, boasts a bevy of world-class companies, and draws on a work force with a passion for education.

That would surely be the envy of many a new leader. But for the energetic former construction CEO with a reputation for achievement, bold ideas and grand projects, it is simply not good enough.

Under his "Economy, First!" motto, Lee has vowed to push economic growth to 7 percent annually, and over a decade double per capita income to $40,000 and make the ROK the world's seventh-largest economy, up from 12th now. Highlighting the key numbers in each of these goals, he has called this his "747" pledge, meant to evoke a soaring jumbo jet.

To make that happen, he has promised to shake up the country by slashing regulations, reorganizing government, pursuing more free trade agreements and revamping education to introduce more competition.

Lee has also promised to draw in more foreign investors and pay special attention to their complaints, which include inconsistent policy implementation, anti-foreign business sentiment among government officials and prosecutors and hard-line labor unions.

Pledged foreign direct investment into the ROK fell for a third year in 2007, dropping 6.5 percent to $10.51 billion.

Lee is taking office at a delicate time, given worries about a possible recession in the US, the ROK's third-largest trading partner, and how that could affect China and the EU, its two biggest export markets.

Recurring corporate corruption scandals in the ROK, particularly among the country's huge industrial conglomerates, or chaebol, are another challenge.

James Rooney, president and CEO of Market Force Co, an Asia-focused investment and consulting firm, said the key for Lee to achieve and even exceed his goals is to focus on China, going beyond exports to areas like financial services and enticing its increasingly affluent citizens to visit the ROK for tourism, education and medical care.

"To put it simply, you've got a population of 1.3 billion," he said. "These are the passengers for your 747 jumbo jet."

Agencies

(China Daily 02/22/2008 page11)