KIM'S NEXT REFORM: THE MEDIA?

The president even got in a feud with the progressive Hankyoreh Shinmun, which was an ardent supporter during the 1997 presidential election and generally endorses his policies. The paper raised the president's ire by claiming that Kim's political party, the National Congress for the New Politics, had overspent the legal limit in two recent by-elections. The party threatened to sue but thought better of it.

A spate of scandals has provided plenty of fodder for critical news stories. The president's policy of making peaceful overtures to North Korea is grist for many conservative journals - especially as Pyongyang seems determined to undermine many of Kim's initiatives. Now National Assembly and presidential elections loom, which will inevitably lead to more criticism no matter what moves the president makes.

In South Korea, leaders have been known to respond to press criticism with strong tactics. So alarms were sounded when the National Tax Administration announced it would investigate two companies connected with the media for possible tax evasion. One of them is the Pokwang Group, a little-known business entity controlled by the in-laws of Samsung chairman Lee Kun Hee. The media link is with Lee's brother-in-law, Hong Suk Hyun, who is owner and chief executive of the Joongang Ilbo. The government is also looking into the Segye Ilbo, a newspaper owned by the Unification Church of Moon Sun Myung.

Historically, South Korean governments have used tax investigations to tame the media. Even Kim Young Sam, the first civilian president in decades, rattled the media by ordering investigations into 10 newspapers. Referring to the latest two, ex-journalist Kim Joong Bae of the People's Coalition for Media Reform says: "I'd like to believe that these investigations are not politically motivated."

Suspicions were raised that companies owned by the Tong Il Group (belonging to the Unification Church) might have transferred or provided some illegal financial support for the Segye Ilbo. But it is also true that the paper has been critical of Kim Dae Jung's policy towards North Korea, especially since the government turned down the group's request to develop tourism with the North.

The Tong Il connection illustrates what many media critics think is wrong with South Korean journalism. Most newspapers are owned either by large business conglomerates or are subtly influenced by chaebol advertising. Seoul has 12 daily newspapers, most of which lose money and have to be underwritten by business backers.

Like many South Korean institutions, the media could stand reform. The question is how to accomplish this without violating freedom of the press. President Kim talked about restructuring the media before his election. It ranked up there with other changes he envisioned for the chaebol and the political system, he said. Identifying the problem is relatively easy. "There are just too many newspapers in South Korea," says one of Kim's trusted aides, Park Jie Won. In theory, Seoul could promote consolidation by ordering government-owned banks to deny them more credit, but that would simply invite more criticism.

The investigations have handed the opposition an issue, just as the political situation is heating up. Lee Hoi Chang, chairman of the opposition Grand National Party, says he suspects the probes are meant to muzzle the press. Joongang Ilbo was a major supporter of his candidacy during the 1997 elections. Kim is about to initiate political reforms dear to his heart that are sure to be controversial. There is the continuing opening to the North and reform of the economy. He needs public support whichever move he makes. But if he tries to reform the media, he will get thunderous criticism. If he lets things go as is, he is unlikely to get the kind of support he desperately needs to govern.

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