Gov`t to Take Stronger Role in Restructuring

Financial Supervisory Service Governor Kim Jong-chang said yesterday that the government’s role should be strengthened in corporate restructuring, adding entire industries could face streamlining instead of just individual corporations.

This is the first time for the financial watchdog to clarify its specific restructuring plans for business sectors.

These measures were demanded by the leadership of the ruling Grand National Party, including chief policymaker Yim Tae-hee.

In a supreme council meeting party headquarters in Seoul, Kim said, "Restructuring will mainly proceed under the discretion of creditor financial institutions. At the same time, however, the financial institutions, businesses and the government will share roles in the upcoming restructuring."

"The corporate overhaul will be conducted by group and corporation. We will also devise a response plan on sectors as needed.”

In a prior meeting between the party and the government, Kim suggested activating the role of a task force for corporate finance improvement that he heads.

koh@donga.com