Prime Minister calls for setting example in sharing economic difficulties
- 관리자
- 2008.10.30
- Hit 4145
Prime Minister Han Seung-soo, left, presides over a Cabinet meeting at the Central Government Complex in Seoul, Tuesday (Oct. 28)."In a situation where the entire nation is striving to revive the economy, the public sector, too, should make doubly sure that it does not invite the scorn of the people, and that it forcefully implements policies to slim itself down," Prime Minister Han Seung-soo said on Tuesday (Oct. 28).
Prime Minister Han made the remarks at a Cabinet meeting held at the Central Government Complex in Sejongno, Seoul. He said, "Worries are arising over the possibility of the worsening external environment leading to a shrinking economy, including sluggish exports and consumption, and having lingering effects." He stressed the need to seek comprehensive and diversified measures to overcome economic difficulties in the long term.
The Prime Minister especially urged the public sector to set an example in sharing economic difficulties. He added, "I hope that the other parts of the public sector, too, will come up with drastic streamlining programs, including a freeze on salary increases and numbers of staff, considering that the government has already frozen civil servants' salaries and numbers."
The Prime Minister also asked the private sector financial firms to adopt policies to make their management efficient by rationalizing their staff pay scales in tandem with the government's decisions to guarantee their foreign loans and supply won currency liquidity to them.
The Prime Minister said, "The government has so far maintained a policy of minimizing intervention in the management of the private sector financial institutions. It's natural that the government should make such a demand at a time when it's inevitable for it to guarantee their foreign borrowings. Advanced nations, including the United States, have already taken similar measures to put restrictions on pay scales" of private sector financial firms.
The Prime Minister went on to say, "In Korea, some banks have already decided to cut their staff's salary on their own initiative. But their decision, however, is not deemed to be sufficient." Meanwhile, he told financial authorities, such as the Ministry of Strategy and Finance and the Financial Services Commission, to sign memoranda of understanding with financial institutions in this regard to make up for insufficient policies and measures.
To save foreign currency reserves, the Prime Minister urged the public sector to refrain from sending its staff on nonessential overseas business trips, and the government to make sure that it does not waste budget on unnecessary projects during the season for year-end planning.
The Prime Minister also stressed the spirit of saving foreign currency, despite the country's holdings of foreign currency reserves being deemed sufficient enough to prevent the recurrence of a financial crisis.
Commenting on budget spending during the season for year-end planning, the Prime Minister asked the local governments not to waste budget hastily on unnecessary projects.
In conclusion, the Prime Minister said, "People on low incomes have been hit hardest by the current economic difficulties. You Cabinet members, please visit needy neighborhoods to share their difficulties and encourage them."
By Chung Myung-je
Korea.net Chief Staff Writer