Exit for nonviable firms urgent to lessen economic burden: Kim

President Kim Dae-Jung called Friday for an early settlement of issues related to nonviable companies like Daewoo Motor and Hanbo Steel Co. in order to reduce the burden on the national economy. The president stressed that banks would soon have a system ready to allow insolvent companies to go bankrupt, said Cheong Wa Dae spokesman Park Joon-Young. The president was presiding over a luncheon meeting of cabinet ministers to review the progress of efforts to complete 12 core reform tasks in the corporate, financial, public and labor sectors.

Kim said officials who brought about their companies` insolvencies through the use of illegal practices like manipulating financial records should be called to account. He was quoted as telling the ministers ``to make efforts to help conclude the proposed mergers between banks and boost restructuring in the non-bank financial sector just as scheduled.`` Referring to reforms in the public sector, President Kim said, ``Despite our devoted efforts, we have not been evaluated as highly as we expected.`` He instructed the government ministers to ``introduce a system to advance reforms in all areas, including personnel management, organization and budget, thus setting an example for the private sector.``

The president noted that the nation`s will to complete structural reforms must not weaken now that the basic framework for reforms in the four major sectors has been completed. ``Since the first half of this year marks an important period for assessing the progress of reform efforts, the ministries should thoroughly check that structural reforms are moving ahead as planned,`` the president was quoted as saying.

[Yonhap]