40 trillion won budgeted for bailouts

The government decided to raise 40 trillion won in public funds for bailout and forming a committee of officials and non-governmental economists to supervise the money¡¯s use. The decision was made Tuesday at a cabinet meeting presided over by President Kim Dae-Jung.

The government is expected to submit to the National Assembly a bill seeking endorsement for deposit insurance fund bonds in the amount of 40 trillion won to be floated by the Deposit Insurance Corp. for the generation of the additional public funds.

To be co-chaired by the finance-economy minister and a financial expert drawn from outside the government, the joint committee on public funds is to remain in operation until the end of 2002, when the manner of disposing of government-held shares in banking institutions will have been resolved.

The body will consist of, besides the two co-chairmen, 10 members -- the minister of planning and budget, the chairman of the Financial Supervisory Commission, the president of the Deposit Insurance Corp., the president of the Korea Asset Management Corp., the chairman of the Council for Bank Evaluation, the chairman of the Committee for the Deliberation on Banking Development and private-sector economists.

Choi Young-Mook ymook@donga.com