Root cause of bankruptcies must be found: Pres. Kim

President Kim Dae-Jung Tuesday instructed the government to take necessary steps to prevent companies from going bankrupt and from using illicit means to cover up their financial woes.

Such cases can be prevented through thorough investigations of the owners and chief executive officers (CEOs) of insolvent firms and the accountants involved in the fabrication of financial records, he said.

Kim made the remarks in reference to the ongoing prosecution investigation of the bankrupt Daewoo Group during a meeting to check the progress of restructuring in the corporate, financial, public and labor sectors. The meeting, held at the Cheong Wa Dae presidential office, was attended by Deputy Prime Minister-Finance and Economy Jin Nyum and other officials.

The President also instructed the administration to work out special measures to reduce unemployment within the limits of the state budget, saying that the number of unemployed may rise temporarily in the course of restructuring.

He pointed out that the Korea Real Estate Trust went bankrupt due to mismanagement that began during the previous administration.

"Related ministers should uncover the causes of mismanagement, hold those responsible for bankruptcies fully accountable and strive complete the reform of public enterprises,¡¯¡¯ the President stressed.

Yonhap