Relations between the government and business in South Korea have seldom been peaceful. But as Roh Moo-hyun prepares to assume the presidency on February 25, a new battle is brewing between his liberal policy team and the country's conservative, family-based industrial conglomerates, or chaebol.
At the centre is the longstanding issue of business reform. The groups emerged bruised but little changed from the 1997-1998 Asian financial crisis. While President Kim Dae-jung has done much to define the issues and set the direction for change, he is leaving office with only a modest record of implementing key reforms.
Mr Roh, 56, is determined to not only launch a fundamental restructuring of chaebol groups, but also to build institutions that will ensure a fair and open market.
The incoming administration's buzz words are transparency and accountability, growth and redistribution. Above all, Mr Roh wants to introduce more globally recognised standards into the economy.
In a major speech before a meeting of American and European businesspeople in Seoul on January 17, Mr Roh underlined his major policy goals. He said he will seek a revision of laws governing taxes on inheritance and gifts, as well as stock market operations. His liberal advisers are determined to close loopholes to prevent chaebol owners avoiding paying taxes when transferring assets to the next generation of family members. They are also keen to enact legislation to allow small investors to launch class-action suits against listed companies that engage in insider trading, false public disclosures and accounting fraud.
The Federation of Korean Industries, a big-business lobbying organisation, has reacted with a predictable outcry.
Chaebol-group spokesmen have indicated that while they may concede on tax law issues, permitting class-action suits would wreak havoc in the corporate world.