President`s dialogue with the people: Q&A

1. Measures for economic recovery

― When do you think the economy will take a turn for the better?

``It is true that the economy has been in good shape since the latter half of last year. It is a worldwide trend. I think we failed to carry out reforms swiftly and thoroughly, causing a weakened competitiveness that resulted in the economic slowdown. We enjoyed a $900 million trade surplus in January and February this year. I believe we will be able to obtain good results from the second half of the year. I foresee that if the U.S. economy improves, our economy will also recover rapidly.``

― There are concerns that the economy is headed for another downturn.

``I do not have an overly optimistic view of a temporary phenomenon like small increases in stock prices. Restructuring must be carried out, led by the private sector. Viable companies should be aided and nonviable ones should be allowed to go bankrupt to make our economy strong.``

― Would you outline the progress of reforms in the four major sectors?

``It may sound like I am praising myself, but the International Monetary Fund (IMF) said that among the countries that experienced a currency crisis, it would give 90 points (out of a possible 100) to the reforms in the four key sectors in Korea. However, the reforms in these areas have yet to be completed. We have just set up a foundation to work to correct problems in the economy and keep it moving in the right direction. But I admit that reforms in the labor sector so far have been insufficient.``

― I wonder if the financial restructuring was well conducted.

``Contrary to past practices, the government did not issue orders to banks as to their policies or the liquidation of nonviable financial institutions. We are just asking them to offer loans to small and medium-sized companies need the most assistance and protection. The government will not help unprofitable companies. Neither the federal government nor anyone else in political power will take steps to assure their survival.``

― City gas charges rose as much as 25 percent over the past year.

``(Gas charges) rose due to the sharp increase in international oil prices. If oil prices go down, gas charges will follow suit. But the government did its best to keep inflation within 3 percent last year. It will not raise fees this year and will curb the increase rate at less than 3 percent.``

― The government should offer aid as soon as possible to companies now under workout programs or court receivership if they have the potential to recover.

``What is important is that they make ends meet. The banks have enough money. There is no reason for them not to offer loans. Companies no longer require political backing to borrow money (from banks) and securities.``

― What do you think of the ongoing fabrication of financial records and creation of slush funds (at local enterprises)?

``When the government finds out (about such illegal practices), it will call those involved to account for their wrongdoing. About 10 former and present top executives of the Daewoo Group were arrested. We won`t force only the working class to bear the burden for corporate misconduct or overlook the wrongdoing of business owners. The (former) chairman of Daewoo is in hiding overseas. The Ministry of Foreign Affairs and Trade is trying to locate him.``

The president said the economy, which has been in stagnation since the end of last year, will revive from the second half of the year and that if the U.S. economy improves, the (Korean) economy will also recover rapidly. But the public doesn`t agree with the president that the reforms in the financial, corporate, public and labor sectors have been entirely successful. Kim cited the success of reforms as the grounds for his optimistic outlook. The president did not mention the special treatment given some nonviable companies or the personnel mismanagement at public corporations which many domestic economic experts cited as problems. For the most part, he spoke in general terms and gave the impression that overall prospects were very bright.

2. Prospects for inter-Korean relations

― Should North Korean leader Kim Jong-Il`s upcoming visit (to Seoul) be made when the people`s sentiment toward North Korea has not yet changed?

``A public poll showed that 90 percent of the people approve of Chairman Kim Jong-Il`s visit to Seoul. They do not support communism or back Chairman Kim personally. They support his Seoul trip because it is desirable for reducing the threat of war, establishing a permanent peace on the Korean peninsula and promoting reconciliation and cooperation between the South and the North.``

― When do you think Chairman Kim will come here?

``That`s what I`d like to know. The date has yet to be decided. It is certain that Chairman Kim will come and he should do so because he promised to do so. But the government won`t make haste with it. First, I will go to the United States in March (March 6) and Chairman Kim will reportedly visit Moscow in April. Naturally, he will come to Seoul after that and the date should be further discussed (between the two sides).``

― I wonder whether inter-Korean relations are being promoted too rapidly when a national consensus on unification has yet to be produced. I suspect we are giving too much to the North despite our bad economy. I`ve heard that the government is being manipulated by North Korea.

``I do not mean we have to realize unification right now. I think unification will come 20 or 30 years down the road. The point is that we should avoid war and instead reconcile and cooperate with each other. You said that the government is being pushed around by the North, but I went to Pyongyang last June and obtained a concession (from the North) that it would not insist on the withdrawal of U.S. troops (from the South), cling to its confederation formula, and demand the repeal of (South Korea`s) National Security Law. These are the issues North Korea has been focusing on for the past half century. The (abolition of the) National Security Law is not the premise for Chairman Kim`s visit.

We are not being pushed around by the North. The North has often changed times or places (for talks with the South). It is not true that we are giving too much to the North. We provided a total of $180 million so far. The previous government gave a total of $230 million, including 500,000 tons of rice. We are offering aid to the North within the budget that was passed in the National Assembly. When we established diplomatic ties with the former Soviet Union (in 1990), we extended loans of $1.43 billion. In the past, West Germany gave $1.5 billion won to East Germany annually for 17 years with nothing in return.

In the future, inter-Korean economic cooperation will be strictly based on market economic principles.``

On the timing of Chairman Kim`s visit to Seoul, President Kim said South and North Korea were discussing the issue, but that ``there has been no conclusion and the government will not make haste with it.`` This indicates that Chairman Kim`s Seoul trip may be delayed.

President Kim made it clear that the visit would take place after Chairman Kim`s Russia trip in April and that the issue would be discussed between the two sides, indicating that the North Korean leader`s visit would occur some time after May at the earliest. As well as the bilateral discussions, the decision depends on many variables like the ``creation of an atmosphere`` conducive to his trip in the South.

3. Netizens` reactions pour in

The KBS Internet homepage was swamped with questions submitted by over 700 netizens. More than half of them were critical.

A Seoul student, Lee Jang-Hyun, wondered whether the government had given too much away to North Korea, despite the difficult economic situation here at home. A netizen living in Kwangju demanded the ruling party to live up to its commitment made at the time of the president`s inauguration, accusing it of being preoccupied with staying in power and of breaking its promises.

Kim Ji-Su blamed the government for the timing of certain incidents. He asked why the administration leaked news of the illegal appropriation of funds by the state intelligence agency to fund election campaigns by the former ruling party immediately before a meeting of the two major party leaders. He also brought up the fact that the ongoing tax audit of media companies was unveiled in the first presidential press conference at the beginning of the year.

At least two writers had a very negative view of the North Korean leader`s upcoming Seoul visit: ``Kim Jong-Il is a master criminal.``(Political Stability Man); ``He must apologize for the atrocities, including the bombing of a Korea Air Lines jet.``(Ryou Hyung-Gi)

There were more than a few cynical reactions sent during the town meeting. `` I am now watching iTV (of Inchon)...`` (Lee Kwang-Jin); `` Let me know when the next show is held, so that I can rent some videotaped movies in advance.``(Kukmin) Another netizen (Admirer) requested President Kim to take care of state affairs in the same meticulous way he used to field questions in the meeting.