Assembly studies public funds

The finance and economy committee of the National Assembly started deliberating over whether to endorse a second batch of public funds requested by the government Monday. The 40 trillion won bailout is to be used to help troubled banks. Finance Minister Jin Nyum was on hand at the session.

Rep. Kang Un-Tae of the ruling Millennium Democratic Party (MDP) spoke in favor of passing the bill immediately to enable a timely infusion of the public funds but Rep. Park Jong-Keun of the Grand National Party (GNP) insisted that approval should be withheld until the specifics of the required money are made perfectly clear.

Earlier in the day GNP leader Lee Hoi-Chang told a caucus of the party vice presidents that GNP members must stand firm on forcing a thorough examination of the fund request before giving consent to the bill on Nov. 30. The floor leaders of the two parties had agreed to act on the bill by then. During a meeting of the national affairs committee Rep. Chung Hyung-Keun of the GNP raised doubts about the role of a cousin of a former chairman of the Financial Supervisory Commission and currently on the staff of the presidential office (Cheong Wa Dae) who has been rumored to be peddling influence in connection with a scandal involving Lee Tower Tech over alleged manipulation of stock prices.

Littauer Technologies Co. brought in US$35 million from Ericsson of Sweden on Oct. 18, according to Chung, and then sent US$33.25 out of the country on four occasions before early November. The opposition lawmaker added that it urgently calls for an inquiry into the trick of bringing overseas funds into Korea and than sending them back abroad after shady speculations in stocks.

In reply to questions asked by assemblymen of both the governing and opposition parties about the relevance of financial holding companies Finance Minister Jin said he is also concerned over the possibility of such firms turning into a cluster of insolvent financial institutions, suggesting the need for hammering out a set of options to make up for the weaknesses of the proposed scheme.

Song In-Soo issong@donga.com