Lee displays confidence in overcoming financial turmoil

SEOUL, Oct. 7 (Yonhap) -- President Lee Myung-bak said on Tuesday that his government has mapped out sufficient countermeasures to help the nation weather the ongoing global financial turmoil.

"The current crisis facing the nation is wholly different from the foreign
exchange crisis of 1997," Lee said while presiding over a weekly Cabinet meeting
at his office.
"The government is now setting up countermeasures. Thus, the public doesn't have
to be worried much if the business concerns reinforce their self-rescue
restructuring efforts," said the president.
Lee's remarks appear intended to stem the spread of unrest in the financial
market to the real economy, observers say.
In recent weeks, the value of the Korean won has steadily weakened against the
U.S. dollar, plunging to 1,330 won against the greenback on Tuesday, the weakest
level seen in 10 years and eight months.
The crash in the value of the won came amid growing concern over the nation's
shrinking foreign exchange reserves.
"Excessive optimism is dangerous, but we don't have to be mired in pessimism and
a sense of crisis," said Lee at the Cabinet meeting.
"The government is now striving to expand its foreign exchange holdings and
liquidity, while the corporate sector is making its own restructuring effort.
Above all, the most important thing is for the government to give confidence to
the people. In that sense, the government has performed satisfactorily thus far,"
said the president.
Lee said Monday that he will propose a tripartite summit with Japan and China on
the sidelines of the Asia-Europe Summit, slated for Oct. 24-25 in Beijing, to
discuss concerted regional countermeasures to the global financial crisis.
Lee made a separate proposal last week that the finance ministers of his country,
China and Japan meet to discuss closer policy coordination in the face of the
U.S.-sparked global financial turmoil.
ycm@yna.co.kr
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