January 18, 1998South Korea's President-ElectSays the Worst is
Yet to ComeDow Jones NewswiresSEOUL, South Korea -- Reaching out to the
people in a televised dialogue, President-elect Kim Dae-jung said Sunday
the worst is yet to come in South Korea's struggle to overcome its
economic problems under restrictions from the International Monetary
Fund.South Koreans gather to watch President-elect Kim Dae-jung. "The
real ordeal will begin from now on," Mr. Kim said in his first direct
dialogue with the public televised live on national networks since being
elected. "Frankly speaking, we're just entering a dark IMF tunnel."
Layoffs and other hardships resulting from South Korea's economic
collapse dominated the two-hour program, dubbed "Let's show the great
potential of the South Korean people."The dialogue was a campaign pledge
of Mr. Kim, who was elected president on Dec. 18. It was patterned after
the "town hall" meetings staged by American presidents.Mr. Kim took
questions mostly from seven select panelists representing all walks of
life. He also took questions from 200 people on the studio floor and a
few people in the streets.Mr. Kim's term will not begin until Feb. 25,
but he has already gotten heavily involved in efforts to pull the
country out of its economic morass.The president-elect said 1998 will be
a "year of harsh trials" and predicted up to one million job layoffs and
double-digit inflation.While promising to strengthen the nation's skimpy
social safety nets, he appealed to workers to accept layoffs to save the
country. He said layoffs are necessary to lure back foreign investors
who fled the country."It's very much clear that in an era of a global
economy, we can't survive without foreign investment. We must change our
attitude toward foreign investment. We should welcome it," Mr. Kim said.
"By allowing layoffs, we'll lose 20% but save the other 80%. When the
80% get stronger, they will help hire back the 20% who lost their jobs,"
he said.The president-elect said layoffs are a key to winning foreign
lenders' rollovers of South Korea's short-term debt of $92 billion due
within a year of less.A South Korean government delegation left Sunday
to attend debt rollover and refinancing talks with about 40
international bankers in New York this week.
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