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To: Jon Koplik who wrote (15232)	9/20/1998 10:20:00 AM
From: marginmike	Read Replies (1) \| Respond to of 152472

The bottom is forming folksS.Korea fin watchdog sees no further crisis(RPT) SEOUL, Sept 20 (Reuters) - The head of South Korea's financial watchdog said on Sunday he did not expect another financial crisis to come as financial and corporate restructuring began to bear fruits. ''The international community acknowledges Korea's restructuring efforts. I don't see another financial crisis coming,'' said Lee Hun-jai, chairman of the Financial Supervisory Commission in a TV talk show televised live by the MBC. Lee said he believed the appropriate won-dollar exchange rate at the moment was 1,350-1,400 and that the rate would be at the similar level at the end of this year. ''Given the current economic conditions, the appropriate exchange rate would be at 1,350-1,400,'' he said. Lee also said the government's measures to boost the staggering economy would not necessarily hamper the financial and corporate restructuring. ''Tax cuts (aimed at boosting domestic demand) and infrastructure investment have little to do with the restructuring,'' Lee said. ''Such boosting steps will not hinder efforts to restructure problematic corporations and banks on an individual basis,'' Lee said. ''But too relaxed money supply will be dangerous because it could extend structural inefficiency (of companies and banks).'' Lee also said layoffs of bank workers were inevitable to save the ailing banking sector and the economy. ''Workforce adjustments will continue until labour productivity in the banking sector reaches the level of advanced countries,'' Lee said. He said the commission aimed to raise per-capita operating revenue to an average of 260 million won by 2000 from the current 150 million won. Some 5,000 unionised workers of the country's banks rallied in a Seoul park on Saturday to protest plans to lay off numerous banking workers. Union leaders said unions covering the banking sector would launch an indefinite general strike on September 29 unless the government withdrew massive layoff plans. ''The government is fixing up problems of the banking industry with taxpayers' money. The normalisation of the banks' management is the priority,'' Lee said. The commission classified five troubled banks as non viable in June and let them be absorbed by other healthier banks. Seven commercial banks, whose capital adequacy ratio as required by the Bank for International Settlements is lower than eight percent, had to come up with plans to normalise their operations, including imports of foreign capital and mergers. Related News Categories: US Market News Help Copyright c 1998 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon. See our Important Disclaimers and Legal Information.