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.Return to top of page
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