President vows to push forward with restructuring as planned

President Kim Dae-Jung, in connection with the economic structural reform, stressed on Tuesday that enterprises with chances for survival should be supported positively and those for which dissolution is inevitable resolutely expelled.

Receiving joint briefings from Finance-Economy Minister Jin Nyum and other economic ministers at Chong Wa Dae, the President also said that economic policies need to be unwaveringly promoted from a financial point of view but not from a social policy perspective.

Noting that some enterprises have cash shortage problems, the President stated that creditor banks should give positive assistance to the 235 companies that have been judged viable under their own responsibilities. Noting that the creditor banks began exchanging bills for Daewoo affiliates after Daewoo was put under court receivership, Kim said that it is too late to bail them out as they would go bankrupt before rescue measures are taken.

President Kim, saying that many construction companies went under because too many were engaged in excessive competition, expressed hope that related government authorities would mete out remedial steps or related construction firms would explore ways of self-survival. He added that a certain amount of construction projects need to be contracted with local firms.

In connection with the unemployment issue, President Kim noted that unemployment would increase during the restructuring process, but said that if the second round of restructuring is finished, the jobless rate will decrease. He noted that some 1.78 million unemployed were recorded in the first round of restructuring but this figure fell to 700,000 after structural reform was completed.

Emphasizing that most important element for the economy is the people's psychology, the President said that efforts should be exerted to contain psychological instability among the people, pointing

out that a lack of public confidence would lead to consumption shrinkage and stock price falls.