Kim orders cabinet to address economic crisis

President Kim Dae-Jung pledged Tuesday that he would do his utmost to stabilize the stock market, stating that the monetary flow is highly important.

Presiding over a cabinet meeting in the morning at Chong Wa Dae, President Kim made the statement in connection with the recent series of economic development regarding the skyrocketing crude oil prices, fall of semi-conductor chip prices and Ford Motor's pullout of its takeover deal with Daewoo Motor. He directed the cabinet members to strive to cope with the situation. To this end, he stressed that the government will have to complete reforms in the four major sectors, corporate and financial restructuring, and reforms in the public and labor sectors by the end of next February, as promised to the people.

With regard to measures to deal with the oil price hikes, he proposed a policy to discourage oil spending by putting a heavy financial burden on the lavish oil users. At the same time, he emphasized that the government should take the lead in a campaign to promote frugality in the oil spending.

Noting that it is deplorable to learn that the management teams of public enterprises were found to be immoral by the result of the inspections, the president instructed the ministers concerned to hold related managers responsible and take reformative steps.

President Kim, saying that the nation's real economy is making a favorable turn and stock prices are low appreciated, asked the cabinet to grapple with the pending problems with confidence. He added that the nation must carry out reforms steadfastly and strengthen its competitive edge.

Choi Young-Mook ymook@donga.com