[Reporter`s view] Gov`t financial agencies contradict themselves

"Although the banks might close, depositors will be able to receive up to 20 million won within the 15 days after the closure. " -- Lee Jong-Ku, director of the Bureau for Financial Policy of the Ministry of Finance and Economy, Dec. 12.

"Following the closure, depositors can receive up to 5 million won within the five days but must wait at least 2 months to receive up to 20 million won." -- Pang Dong-Joon, director of the Korea Deposit Insurance Corp., Dec. 14.

"There will be no capital-reduction among the banks that received public fund injection, Hanvit Bank, Foreign Exchange Bank and Cho Hung Bank. If necessary, we will take over the deferred debts." -- then- Finance-Economy Minister Lee Hun-Jai, May 23.

"All stocks of the six banks that received public fund injections, Hanvit Bank , Seoul Bank, Peace Bank of Korea, Kwangju Bank, Cheju Bank and Kyongnam Bank, will face complete capital reduction without compensation." Lee Jong-Ho, head of the Bank Supervisory of the Financial Supervisory Service (FSS), Dec. 17.

"The listed companies, as well as the companies listed on the Kosdaq, will be allowed to destroy stocks in their possession through the resolution of the board of directors." -- Lim Jong-Ryong, Head of the Stock Market Policy Department of the Ministry of Finance and Economy, Nov. 1.

"As the stocks in the possession of the companies have been obtained through the Stock Trading Laws and traded according to the regulations, they must not be destroyed." Yoon Seung-Han, head of the Public Announcement of the FSS, Dec. 14.

The flip-flopping statements by the various government agencies seem reminiscent of the boy who cried wolf. The agencies that are responsible for the policies in financial matters make statements that are quickly contradicted by each other.

These statements are made officially at press conferences of the Ministry of Finance and Economy, then overturned at the press room of the FSS, and vice versa.

Were these statements made for the purpose of nothing more than to alleviate the jitters of the investors of the banks and financial institutions as the situation was getting out of hand?

The gravity of these statements lies in the fact that they led to the detriment of the public. Those who have bought company stocks believing that the company itself would not hold any stocks, or those who were encouraged to buy the stocks of the banking institutions, the housewives who invested their entire family savings into the banks have all been dealt a low hand.

Did the government agencies spit out such statements in frustration? These days, even the reporters are in fear of whether the statements of the government agencies ought to be in print.