Seoul to announce measures for financial market

The government by next week at the latest will announce its handling methods for insolvent companies and financial institutions and complete the on-going reform within the year. Moreover, it plans to review bills to amend the fundamental policies on macroeconomic indexes by formulating emergency measures against economic misfortunes such as the rise in oil prices and Ford¡¯s withdrawal from the acquisition of Daewoo Motor. Finance and economic minister Jin Nyum announced measures against red alerts in the financial sector such as the falling stock prices, and wide-spreading insecurities at a press conference Monday.

Minister Jin asserted that the government will announce measures this week and next week on a step by step basis to complete the on-going reform in the final institutions to boost the stock market by taking care of insolvent companies and financial institutions that are either under court receivership or workout within the year. Minister Jin further asserted the viable companies among insolvent companies will be revived by converting debts into equity whereas no-viable companies will be banished for good. Minister Jin added that actual the size of further needed public funds will be announced within this week and submitted to the National Assembly for approval. He sternly stated that no temporary measures will be taken to boost the stock market.

Minister Jin asserted that the government has already prepared emergency contingency plans against worst scenarios possible as the overall economy is in a bad condition. He emphasized that the people should not be over-worried over the likeliness of an oil crisis similar to the first and second oil crisis. He added that Ford¡¯s withdrawal from the acquisition of Daewoo does not correspond to the fall of the investment rating on Korea and Korean companies. He emphasized that between the time to normalize Daewoo Motor and find a buyer, it may add certain conditions and choose a buy-first-and-pay-later method.