Gov`t promoting year-round corporate restructuring: official

SEOUL, Dec. 16 (Yonhap) -- The South Korean government will promote year-round restructuring efforts that can help the country make the next leap forward, a senior economic policymaker said Tuesday.
At a gathering on the government's economic management plan for 2009, Minister
of Finance and Strategy Kang Man-soo told reporters that once concerns about bad
loans and capital adequacy have been resolved, there will be a move to
restructure shaky firms.
He did not go into detail, but stressed that such efforts should not be limited
to the current emergency situation, but should become part of the business
landscape, helping South Korea become an advanced industrialized country.
Corporate restructuring is a sensitive topic because it could lead to layoffs and
trigger opposition from unions.
On economic challenges facing the country, Kang said that the present slump is
unprecedented and the national economy is experiencing acute contraction in terms
of growth and employment.
Most think tanks and the Bank of Korea predicted growth to fall to the 2-3
percent levels next year from 5 percent in 2007 and the 3-4 percent gains
forecast for this year.
"If current conditions continue, it may be hard to maintain growth and jobs in
the new year," he said. The policymaker added that there is even a risk that the
country will become a "low growth" country.
However, he said that if the government's economic stimulus programs exert
positive influence, there is a chance that growth may top 3 percent, with the
current account surplus reaching US$10 billion and 100,000 new jobs being created
in the year.
yonngong@yna.co.kr
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