Gov`t Took Over 21 Trillion Won Loss

The government is known to have supported the organizations that have legal responsibility for the reservation of the loss with 21 trillion won for the past three years.

Rep. Lee Han-Gu of the Grand National Party released a material that shows the government has supported 14 financial aids organizations with the investment of 15 trillion 677.5 billion won and the national budget of 5 trillion and 865.8 billion won.

Rep. Lee argued, ``the government has let the state-owned institutions to support particular businesses or insolvent enterprises that could not be supported by the normal market principles. By taking over the loss of the state-owned organizations that is not necessary, the government has wasted the tax of the people.``

Particularly, Rep. Lee asserted that ``the government supported as much the loss of Korea Development Bank (6 trillion 317 billion won) and Korea Credit Guarantee Fund (2 trillion 355 billion won) from the Mt. Keumgang Tour Project of the Hyundai Group.

The subsidies of the government to the 13 state-owned firms list 2.1667 trillion won to Industrial Bank of Korea, 2.3386 trillion won to the Veterans Pension Funds, 2.2235 trillion won to the Government Officials Pension Fund, 2.1985 trillion won to Korea Technology Credit Guarantee Fund. The only exception is the Foreign Economy Cooperation Fund that had recorded 218 billion won net surplus for past three years.

The government is obligated by the law to take over the loss of 8 institutions among the 14 state owned organization and the preservation of the loss is optional for the rest.

Sun Dae-In eodls@donga.com