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Jin Nyum: Companies neglecting market won`t survive

Posted August. 09, 2000 19:58,   

한국어

On August 9, the government reiterated its policy of resolving the Hyundai crisis under set principles and called on Hyundai to provide a feasible rehabilitation plan as soon as possible.

Future economic policies will focus on expeditiously concluding the financial sector restructuring process and addressing distressed elements in the corporate sector. This will be accomplished by completing reforms in the 4 major sectors -- corporate, finance, labor and public -- and decisively dismantling unhealthy companies.

In relation to the increasing polarization of the economy by region and industry, efforts will be made to ensure a soft-landing. These decisions were made at the first meeting headed by Minister of Finance and Economy Jin Nyum, which was attended by ministers from 17 economic agencies. Regarding the Hyundai problem, Jin pointed to the cases of advanced nations and remarked that any company that neglects the market will be unable to survive. He noted such principles must be definitely established and that progress made by creditor banks and Hyundai will be carefully examined.

A MOFE official revealed that the government`s position of resolving the Hyundai problem through the creditor bank is unchanged but said the government would not remain idle throughout the process. The main economic policy goals for this year were set as the completion of reforms in the 4 main sectors, a soft-landing and the establishment of a base for continued growth and the creation of a new vision. To encourage regulatory liberalization, the level of regulatory liberalization will be a key evaluation criterion when budgets are allocated to each ministry. Budgets related to new regulations will not be provided.

In order to maintain cohesive teamwork, the economic policy coordination meeting, which was previously held every 2 weeks, will be held every week, and cooperation between staff will be advanced. The MOFE also revealed that, taking the financial market into consideration, the amendment of the deposit assurance system will be confirmed in September.