(FORTUNE Magazine) – South Korea, one of Asia's Little Tigers, has lost some of its roar. This year the nation's GNP is growing at around a 5% annual rate -- not bad, but a far cry from 1990's 9.3%. Many blame the snarl of red tape that the Korean government puts in the way of companies. Says Chey Jong-Hyon, chairman of the Federation of Korean Industries: ''Such poor performance could have been avoided if the government's hand was not so heavy.'' Now, it seems, the Korean government is finally listening. Kim Yong Sam, South Korea's first civilian democratically elected President in three decades, is opening the way for deregulating the country's economy. Getting government off the back of business is the focus of Kim's first 100 days, which extend through June. Kim promises ''a new economy'' with more opportunities for U.S. companies, this to be accomplished by eliminating bureaucracy and political corruption. Korea's new chief executive seems to mean business. Korea has already opened its long-restricted market for telecommunications equipment -- giving AT&T a crack at bidding for over $500 million a year in contracts. The Korean government is also wooing Applied Materials of Santa Clara, California, hoping it will produce some of its semiconductor manufacturing equipment in Korea. Says Kim Chulsu, Minister of Trade, Industry, and Energy: ''We'll make it much easier for foreign corporations to purchase land, build plants, bring funds from offshore, and import raw materials.''