7 Bank of Official Flows Loss, National Share

Jeon Yun-cheol, the Deputy Premier and Minister of Finance & Economy announced the repayment plan of Official Flows on June 21. “According to the dominant principle on that the profit-making has the responsibility, all the country and financial institutions will share losses.” said he.

Some people insisted that Hanwha Group is not qualified to purchase the Korea Life. But he said “if the firewall to prevent the financial domination of the industrial capitals, it is out of question”.

He announced the disposal of Korea Life, Seoul Bank and Hynix and the direction of the economic operation of the second half of the year in the breakfast meeting by Korean policy research institutions, in Hyatt Hotel, Seoul.

▽Disposal of Korea Life 〓 Disposal Examination Subcommittee of Public Fund Oversight Committee raised the issue about that Hanwha is not qualified to acquire the Korea Life.

However, he emphasized “The disposal will be determined by Public Fund Oversight Committee on June 27. Also, “if the firewall to prevent the financial domination of the industrial capitals, Hanwha may acquire it, it is out of question.

Yun Jinsik, the Vice-Minister of Finance & Economy added “there is no legal obstacle in acquisition of Korea Life by Hanwha”.

Deputy Premier mentioned, “sales price will be renegotiated”, and the sale price is expected to be high.

▽Economic operation of the second half of the year 〓The Deputy Premier announced “the second quarter’s growth rate is estimated at 6∼7%. Research institutions forecast that the annual real growth rate is 7%. But, there is no change in the basic frame of the economic policy of the second half of the year”.

Analysis shows that this is because the pressure of price increase decreased, but the foreign economic situations are unstable.

Cheongwadae plans to hold the meeting with economic ministers on June 27, and

determine the direction of the economic policy of the second half of the year based on

the basic policy maintenance of the first half of the year.

▽Disposal of Seoul Bank and Hynix 〓The Deputy Premier said “15 bidders expect to acquire the Seoul Bank. MOU will be made until the end of July.

In connection with Hynix disposal, he said, “Creditors will determine according to the market principle.

ecopark@donga.com