Korean Firms Examine Need to Upgrade Their Business Practices and to Adopt Greater Transparency and Stronger Multinational Ethics Programs.

NEW YORK--(BUSINESS WIRE)--Oct. 2, 1998--To familiarize Korean firms with global best practices and the need to adopt more comprehensive multinational business practices and ethical standards programs, The Federation of Korean Industries New York Office (FKI) and the Korean Chamber of Commerce and Industry in the USA, Inc. (KOCHAM) hosted the second in a series of three seminars on September 29th under a grant from the Ford Foundation. Several dozen representatives from leading Korean Corporations and their U.S. subsidiary firms were in attendance.

The seminar, entitled "Upgrading Korean Business Practices," began with a statement by Young Man Kim, Chairman of KOCHAM, who noted, "It is true that Korean firms are now under severe pressure to save on costs and to reduce overhead. However, our long-term competitiveness requires that we maintain and expand our commitment to more formalized ethical standards initiatives and business practices. This will allow us to more effectively interact and serve our shareholders and stakeholders all over the world."

Frank J. Navran, Director of Training and Senior Consultant from the Ethics Resource Center in Washington, D.C. delivered a presentation entitled "Making the Case: The Global Argument for Ethical Standards" in which he outlined five ethical imperatives. This included a detailed examination of costs and benefits based upon moral, legal, perceptual, pragmatic grounds as well as the need for change.

Outlining the experience of Samsung companies, Byung-Kwan Bae, President & CEO of Samsung Electronics America, Inc. described "The Samsung Community Relations Program." This initiative won the 1998 International Award for Excellence in Corporate Community Service from the Points of Light Foundation, a non-profit, non-partisan organization in Washington, D.C., dedicated to promoting the spirit of volunteerism.

Mr. Bae noted the reasons that Samsung has been devoting resources to a program that demonstrates its belief that "the objectives of corporate management lie not only in creating profits but also in creating a credible society and realizing social justice." This includes the enrollment of more than 20,000 Samsung employees and their families into teams that conduct volunteer activities. These include training seeing-eye dogs, taking care of senior citizens and the physically disabled, visiting mentally disabled people with pets, organizing picnics for orphans, counseling troubled youths and disaster rescue and relief service during emergencies.

Delivering a financial perspective, Dr. Scott B. MacDonald Director of Sovereign Research at Donaldson, Lufkin and Jenrette spoke on the "View from Wall Street: Interacting with Shareholders and Investors." Dr. MacDonald's presentation highlighted the global movement of capital and the reasons why transparency and disclosure are important to investors.

In a final session, Mr. Navran examined the challenges facing Korean multinationals and their impact on the bottom line. Recommendations included urging Korean firms to adopt multinational ethics programs, to secure support throughout their organizations, to develop support systems and initiatives that can be implemented domestically and internationally, and to communicate their achievements to the world.

Kook-Hyun Chang, Executive Director of the Federation of Korean Industries New York Office stated, "Through this seminar and similar initiatives we hope to demonstrate the dedication of Korean corporations to developing stronger ethical standards and business practices. We understand this is essential if Korean firms are to maintain growth, attract international capital and realize their potential as dynamic multinational enterprises."

This seminar is part of a long-term effort which began last year with the release of a research report organized by FKI and KOCHAM entitled "Confronting Korea's Public Image in the Age of Segyehwa: Building Skills and Awareness to Compete in the Global Economy". This report highlighted the need for Korean firms to upgrade their management skills and to raise their public pro-file and the resources they devote to strengthening relationships in overseas markets.

FKI is a private, non-profit organization pursuing Korea's economic development and international cooperation based on the principles of free enterprise. Founded in 1961, FKI serves as a central forum and the most influential voice of the Korean private sector, representing Korea's largest businesses and business groups including Hyundai, Samsung, Daewoo, LG and Sunkyong.

KOCHAM is a non-for-profit private business organization headquartered in New York City. Founded in June 1992 to assist Korean firms expanding their U.S. operations, KOCHAM now includes over 600 member firms encompassing import-export, high tech, automotive, semiconductor, banking, shipping, securities, insurance and construction companies.

For additional information please contact Kook-Hyun Chang of the Federation of Korean Industries New York office or Keith W. Rabin of KWR International as indicated below.