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To: derek cao who wrote (13601)	12/18/1997 6:11:00 PM
From: D.J.Smyth	Read Replies (1) \| Respond to of 70976

Kissinger interview today states that Korea is not suffering from a slowdown in the economy, but rather from banking related issues: Per Kissinger: "The Korean economy is essentially healthy. It has a big productive capacity. It has an industrious population, a big saving population with a great sense of public service," Kissinger said. 15:16 DJS Kissinger Warns Provisions In IMF Bailout Could Spur Korean Unres 5:16 DJS Kissinger Warns Provisions In IMF Bailout Could Spur Korean Unrest NEW YORK -(Dow Jones)- Former Secretary of State Henry Kissinger said Thursday in a televised interview that the requirements of the International Monetary Fund bailout could potentially cause unrest in Korea if improvements aren't seen quickly. Kissinger, chairman of the international consulting firm Kissinger Associates Inc., told CNBC that the situation amounts to a race between increasing creditworthiness and declining authority of the government. "I'm watching most closely the danger of political upheaval, and to see whether the situation can be stabilized long enough for the underlying strength of the Korean economy to exert itself," Kissinger said. "I think one of the problems with the IMF program, as with any IMF program, is that it promises to make the country creditworthy in two, three, four years, but in the meantime they impose additional austerity," said Kissenger, who served as former President Nixon's secretary of state. "Then it's a race between increasing creditworthiness and the declining authority of the government." He said he hopes a way can be found to smooth the reform process. "I hope some understanding is shown for not depressing the social level to a point where a social revolution or an upheaval becomes likely." Kissinger said he has known the newly elected president, Kim Dae Jung, for 30 years and has seen him move from a leftist association, as a once-exiled leader of the opposition party, to a more centrist position. Kim "has accepted the IMF plan. The IMF bailout plan, as all IMF plans, imposes a recession. Since he has been identified with the public and poorer classes, it will be harder for him to go against his instincts. But I do think he will try to be responsible. He has a tricky transition period because he doesn't take office until Feb. 25," Kissinger said. Kissinger said he hopes a way will be found to shorten the transition between presidents. He added that South Korea's is a banking crisis, rather than an indication of weak economic fundamentals. "The Korean economy is essentially healthy. It has a big productive capacity. It has an industrious population, a big saving population with a great sense of public service," Kissinger said. Copyright (c) 1997 Dow Jones & Company, Inc. All Rights Reserved. 12/18 3:16p CSTEOF

To: derek cao who wrote (13601)	12/18/1997 6:21:00 PM
From: D.J.Smyth	Respond to of 70976

derek, "they just want to beat those south korea memory companies FAIR AND SQUARE." it is true that South Korean banks have been helping fund Samsung's "dumping" efforts; but clearly the banks strategy has backfired and their dumping efforts are coming to a quick halt. it is my understanding that the banks continued subsidized Samsung - subsidies which were tailored for one area of the company but in fact were used to keep Korean people employed in dead end profit jobs (the government had urged ALL Korean companies at the request of the powerful Unions to keep people employed at nearly all costs). now Samsung and other Korean companies can no longer obtain loans on this basis, nor will the government allow itself to intervene on behalf of strong Korean unions to keep people employed. they were keeping people employed by increasing production of dram which in turn drove down the price of dram. the employment situation at Samsung and other Korean companies is already starting - several thousand layoffs have already occurred this month. production has slowed considerably to where production = demand, and dram prices are expected to firm up. the Korean unions in this whole ordeal are now being viewed negatively for their corruptive influence on government policies. hope this helps

To: derek cao who wrote (13601)	12/18/1997 8:08:00 PM
From: ratan lal	Read Replies (1) \| Respond to of 70976

derek << they just want to beat those south korea memory companies FAIR AND SQUARE. >> Well why dont we go all the way back and be FAIR AND SQUARE with the garment makers, shoe makers, leather goods, earthenware, brassware and other industries that have vanished from the US because of cheap imports. Why is MU a special case?? Its a gloabal village. Wake up and smell the internet. Software being designed overseas with collaboration done via the net, Adult sites being set up in tax free, business friendly countries, Encryption software being designed and sold from overseas. Stop me anytime. I could go on and on. ratan