Kim to punish those behind capital reductions

President Kim Dae-Jung said Tuesday that those responsible for the capital reduction at six ailing banks should be reprimanded.

In a Cabinet session, the President said the public is demanding that the government take action against the people behind the banks¡¯ decision to scrap their existing stocks.

He added that the administration is being blamed for ordering the capital reduction without any explanation after it said there would be no such measure. He said many people had raised the issue of whether it was appropriate to sacrifice small individual shareholders who made second investments to help revive the banks.

The President instructed related government officials to map out measures to help these people. Citing information showing that most of the roughly 100 countries that received support from the IMF (International Monetary Fund) had later called on the organization for further support, he stressed that the nation should not slow the pace of reforms by clinging to efforts to reduce the public¡¯s pain.

He called on related offices to be thoroughly prepared for the implementation of measures to protect low-income earners during the year-end winter season, further urging them to make the best use of budget funds and other resources available to them.