Gov¡¯t to block company heads from falsifying records: Jin

Deputy Prime Minister-Finance and Economy Minister Jin Nyum said Monday that the government would wipe out financial irregularities and prevent company owners from using doctored ledgers for personal gain.

Jin was referring to the recent discovery of fabricated financial statements at Daewoo Group and Dong-Ah Construction Industrial during a meeting with reporters.

He said that the ministry was conducting intensive negotiations with the Ministry of Justice on whether to allow class-action suits against listed firms. Such lawsuits would be a means of settling stock-related disputes in order to uproot the persistent problem of fabricated financial records.

He also said that the government plans to authorize viable foreign investment trust companies to operate major state pension funds and other funds in order to expand the number of funds investing in the local stock market.

Whether to boost investment in stocks with the funds is up to the funds` operating committees, he said, adding that the government would prepare conditions for this.

He also said that the government is considering developing new instruments for stock investments exclusive of state funds which virtually guarantee the principals through securities and investment trust firms, taking into consideration the anxiety of subscribers to the state pension programs following the increased investment in stocks.

Jin added that the government would wrap up reform programs in the public, financial, corporate and private sectors by the end of this month and that the four related ministers would make public the results in joint statement.