Korea`s financial reform shouldn`t be ended half-done

New York Federal Bank governor William MacDonough, governor of New York Federal Bank, stressed that Korea should not endits banking reform half-done since the nation`s economic crisis is yet to be completely resolved.

MacDonough, member of the open market committee of the Federal Reserve Board, has made such a remark via satellite to a symposium held in Seoul Saturday in commemorationof the 50th anniversary of foundation of the Bank of Korea.

He said that Singapore`s central bank has shown a model with an epoch-making financial reform in the midst of Asia`s economic crisis, and noted that countries like Singapore with solid financial system can only properly operate economy.

In this connection, he said, Korea and other Asian countries have to continue their efforts for corporate and financial reforms to secure a long-term growth.

Also, he called for Asian countries to utilize a macroeconomic policy that could promote investment if they want to attract capital without a capital control through central bank. In particular, they are required to avoid any short-term foreign currency control.

The Bank of Korea governor Jeon Chul-Hwan had an opening address in the symposium where BIS secretary general Andrew Crocket and MacDonough have made video speeches.

Park Hyunjin witness@donga.com