SEOUL -(Dow Jones)- South Korea's President-elect Kim Dae Jung, who said earlier this week he feared a national bankruptcy, reversed his stance Wednesday, saying the country is heading for a solution to its economic woes.
Separately, indicating the next administration won't support weak South Korean companies, Kim urged businessmen to promptly liquidate what he called "companies becoming burdensome."
"It appears that, in recent conversations with the U.S. President, Japan's Prime Minister, U.S. Treasury Undersecretary David Lipton and international organizations, including the IMF, the new government has gained confidence" it will cure its current crisis, Kim told local reporters.
"Now, (the country) is grabbing onto a thread toward a solution (of its economic crisis)," Kim said.
Since elected last week, Kim has actively engaged in talks with foreign leaders, seeking their help in Korea's desperate efforts to tackle its deepening foreign-currency crisis.
Regaining foreign confidence is crucial, Kim said, as the government continues to plead with foreign financial institutions to roll over loans to South Korean borrowers.
Kim added that the country has no choice but to voluntarily launch bold reforms.
"In the future, sales and external growth won't be important, what will be important is profit-making," Kim said in a meeting with leaders of five business associations including the Federation of Korean Industries, the powerful lobby group for the country's 30 largest conglomerates.
Kim, meanwhile, softened his stance on layoffs, saying companies will have to lay off employees when adjustments on wages don't help companies revive.
Kim said the new government, which will be launched in February, won't improperly interfere with business, and assured that companies won't be bothered by politicians demanding political funds.
"The collusion between politicians and business leaders and government-controlled economy will no longer exist," Kim said.
Kim, meanwhile, assured conglomerates that they will be given full freedom in their businesses as long as they stay away from unfair business practices and anticompetitiveness.
Kim also suggested Japan might hurry to help South Korea. "I hear it has been said Japan's Foreign Minister Abuchi Keizo will be visiting Seoul Dec. 30 with some sort of a present," Kim said, without elaborating on what the "present" will be.
The foreign minister is reportedly visiting Seoul Dec. 29-30 for talks on peace on the Korean peninsula, and to discuss ways to help South Korea overcome its economic crisis.
Kim, who will take office Feb. 25, also reconfirmed his stance that he would boldly carry out terms to the $57 billion bailout package led by the International Monetary Fund.
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Transmitted: 12/24/97 07:24 (L100ZZsh) |
