KOREA'S MDP PUSHES FOR BALANCED GROWTH, CORPORATE REFORMS.

SEOUL, Dec 1 Asia Pulse - The Millennium Democratic Party (MDP) is promising corporate reforms designed to prevent the strengthening of chaebol's hold on the economy, while securing robust growth of 7 per cent by controlling inflation and encouraging fair distribution of wealth.

The party, which has fielded the "progressive" Roh Moo-hyun as its candidate for the presidential race scheduled for December 19, said that its promises in this year's campaign are based on building up the potential growth forces of the country.

The MDP said that it will move for the transparency of business activities across the board and introduce class actions suits that will make management and large shareholders responsible for their decisions.

The party said that it will limit the indiscriminate expansion of chaebol companies into such areas as the banking sector and businesses that should be reserved for small and medium-sized companies.

"We advocate maintaining restrictions, like the ceiling on investment by subsidiaries of conglomerates, and prevention of guaranteeing payments for sister firms within the same business group, as necessary measures designed to enhance competition and prevent a repetition of the 1997 IMF crisis," said a spokesman for the ruling party.

He added that Roh has already advocated the comprehensive taxation of inheritances and gifts by the wealthy, while expanding policies like employee share holdings and a systematic distribution of profits between managers and employees.

The spokesperson, however, said that the MDP was an advocate of small and medium size businesses (SMBs) and has included the lowering of tax rates for smaller business concerns in its 20 basic policy pledges announced November 18.