ID :
23104
Tue, 10/07/2008 - 13:58
Auther :
Shortlink :
http://m.oananews.org//node/23104
The shortlink copeid
(LEAD) 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.
"Many people in Korea are worried about the worldwide financial shocks. But the
current situation 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 detailed countermeasures, while banks and
businesses are reinforcing their self-rescue restructuring efforts. At a time
like this, the public should have confidence in the government and muster their
strength and wisdom."
Lee's remarks appear intended to stem the spread of unrest in the financial
market to the real economy, observers say.
South Korea survived its own financial meltdown in 1997 after receiving a US$58
billion bailout package arranged by the International Monetary Fund.
Lee's finance minister, Kang Man-soo, said last week that South Korea's foreign
exchange holdings stood at $239.7 billion as of the end of September, compared to
$20.4 billion a decade ago.
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 plunge 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. The government is now trying to cooperate closely with Japan
and China," 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 for the finance ministers of his country,
China and Japan to discuss closer policy coordination in the face of the
U.S.-sparked global financial turmoil.
"Many people in Korea are worried about the worldwide financial shocks. But the
current situation 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 detailed countermeasures, while banks and
businesses are reinforcing their self-rescue restructuring efforts. At a time
like this, the public should have confidence in the government and muster their
strength and wisdom."
Lee's remarks appear intended to stem the spread of unrest in the financial
market to the real economy, observers say.
South Korea survived its own financial meltdown in 1997 after receiving a US$58
billion bailout package arranged by the International Monetary Fund.
Lee's finance minister, Kang Man-soo, said last week that South Korea's foreign
exchange holdings stood at $239.7 billion as of the end of September, compared to
$20.4 billion a decade ago.
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 plunge 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. The government is now trying to cooperate closely with Japan
and China," 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 for the finance ministers of his country,
China and Japan to discuss closer policy coordination in the face of the
U.S.-sparked global financial turmoil.
