Gist of an Interview with Prime Minister Han Seung-soo by Bloomberg TV
- 관리자
- 2008.10.07
- Hit 3379
On the Impact of the U.S. Financial Crisis
In connection with the expected impact of the U.S. financial crisis on the economy of Korea and other Asian countries, Prime Minister Han said the Korean Government is concerned about the possible fallout because the United States is an important trade and investment partner for Korea and many other Asian countries. He went on to say, however, that the situation would improve in time in light of the fact that the financial soundness of Korean businesses had been greatly enhanced since the Asian financial crisis 10 years ago. He also based his positive outlook on the fact that the U.S. Treasury Department decided to inject US$700 billion in the market to curb the further spread of the recent crisis.
He cited some favorable examples to back his view. The BIS ratio of Korean banks has improved to 12 percent as of the end of 2007 from 7 percent at the end of 1997. The average debt-to-equity ratio of Korean companies has been stabilized from 424 percent to 106 percent. The country is also maintaining a stable level of foreign exchange reserves, amounting to more than US$240 billion.
Concerning measures by the South Korean Government to deal with the need to rescue investment banks as in the United States, the Prime Minister said that as of now, the Government is examining the current state of the domestic financial sector. Based on the findings, the Government will take measures accordingly.
Regarding the issue of HSBC’s failed acquisition of the Korea Exchange Bank (KEB), the Prime Minister said that he reckoned that an appropriate investment company would acquire KEB.
On the Korea-U.S. FTA
In regard to his personal views as a former economist on the projection by numerous experts that the U.S. financial crisis and global economic slowdown would be protracted, the Prime Minister said that self-defeating strategies such as tariff increases by countries only exacerbated the situation during the Great Depression in the 1930s. When the going is tough, countries around the world need to further promote trade and investment to expedite global economic growth. In this context, it is very important for the Korea-U.S. FTA to be ratified at the earliest possible date.
On the North Korean Nuclear Issue and Inter-Korean Relations
It is regrettable that North Korea recently requested the International Atomic Energy Agency (IAEA) to remove the seals and surveillance devices at the Yongbyon nuclear reactor.
Despite that, the Government of the Republic of Korea (South Korea) continues to strive to resolve the nuclear issue within the framework of the Six-Party Talks in Beijing. The Government urges Pyongyang to promptly reengage itself in the process of denuclearizing the Peninsula.
As the chair of the Six-Party Talks, China has all along played a very important and constructive role. The Korean Government expects that China will exercise the same kind of leadership once again in bringing Pyongyang to the negotiation table and settling the nuclear issue.
Concerning reported rumors about the ill health of North Korean leader Kim Jong-il and about who is making the decisions in Pyongyang now, no confirmed facts are available currently. Therefore, no judgment of any kind can be made at this juncture.
Meanwhile, the Korean Government is working hard to protect and help North Korean defectors scattered in many countries, including China.
In connection with the expected impact of the U.S. financial crisis on the economy of Korea and other Asian countries, Prime Minister Han said the Korean Government is concerned about the possible fallout because the United States is an important trade and investment partner for Korea and many other Asian countries. He went on to say, however, that the situation would improve in time in light of the fact that the financial soundness of Korean businesses had been greatly enhanced since the Asian financial crisis 10 years ago. He also based his positive outlook on the fact that the U.S. Treasury Department decided to inject US$700 billion in the market to curb the further spread of the recent crisis.
He cited some favorable examples to back his view. The BIS ratio of Korean banks has improved to 12 percent as of the end of 2007 from 7 percent at the end of 1997. The average debt-to-equity ratio of Korean companies has been stabilized from 424 percent to 106 percent. The country is also maintaining a stable level of foreign exchange reserves, amounting to more than US$240 billion.
Concerning measures by the South Korean Government to deal with the need to rescue investment banks as in the United States, the Prime Minister said that as of now, the Government is examining the current state of the domestic financial sector. Based on the findings, the Government will take measures accordingly.
Regarding the issue of HSBC’s failed acquisition of the Korea Exchange Bank (KEB), the Prime Minister said that he reckoned that an appropriate investment company would acquire KEB.
On the Korea-U.S. FTA
In regard to his personal views as a former economist on the projection by numerous experts that the U.S. financial crisis and global economic slowdown would be protracted, the Prime Minister said that self-defeating strategies such as tariff increases by countries only exacerbated the situation during the Great Depression in the 1930s. When the going is tough, countries around the world need to further promote trade and investment to expedite global economic growth. In this context, it is very important for the Korea-U.S. FTA to be ratified at the earliest possible date.
On the North Korean Nuclear Issue and Inter-Korean Relations
It is regrettable that North Korea recently requested the International Atomic Energy Agency (IAEA) to remove the seals and surveillance devices at the Yongbyon nuclear reactor.
Despite that, the Government of the Republic of Korea (South Korea) continues to strive to resolve the nuclear issue within the framework of the Six-Party Talks in Beijing. The Government urges Pyongyang to promptly reengage itself in the process of denuclearizing the Peninsula.
As the chair of the Six-Party Talks, China has all along played a very important and constructive role. The Korean Government expects that China will exercise the same kind of leadership once again in bringing Pyongyang to the negotiation table and settling the nuclear issue.
Concerning reported rumors about the ill health of North Korean leader Kim Jong-il and about who is making the decisions in Pyongyang now, no confirmed facts are available currently. Therefore, no judgment of any kind can be made at this juncture.
Meanwhile, the Korean Government is working hard to protect and help North Korean defectors scattered in many countries, including China.