Political Circles Demand Financial Stabilization Plan

On April 28, the ruling party and the opposition came forward individually to call for measures to stabilize the financial and stock markets. The politicians warned that a new crisis would hit if the unstable stock market were left alone.

In an expanded executives' meeting of the Millennium Democratic Party (MDP), chief policymaker Lee Hai-chan said, "If the composite price index sinks below 600, we will have an emergency on our hands." He explained that he was watching the stock markets "very carefully." Kim Keun-tae, member of both the MDP guidance committee and the National Assembly's Finance and Economy Committee, said, "The weaknesses of the Korean financial market have come to light again, with the unstable KOSDAQ market, restructuring of investment trusts, and a lack of liquidity at Hyundai Investment Trust." He pointed out that a stabilizing prescription was urgently needed.

It was an unusual attitude for the MDP, which had been against the artificial bolstering of stock prices. Chief policymaker Lee Hai-chan plans to meet with Finance and Economy Minister Lee Hun-jae next week to discuss the matter in detail.

Lee Han-koo, chief policymaker of the Grand National Party (GNP), also warned in a major executives' meeting that, "If things go on this way, we will be faced with a serious situation." Before he joined political circles, he worked in the securities field. He said, "We should call relevant National Assembly standing committees, such as the Political Affairs Committee and the Finance and Economy Committee, and prepare measures at the parliamentary level."

During the elections, the ruling party and the opposition pledged that they would be judged by their policies. They now appear to be busy grappling with a serious economic situation. The recent general elections proved that the economy plays an important part in swaying public sentiment, and political circles are expected to be preoccupied with the economic situation in the near future.

Chung Se-kyun, the MDP's second policy coordination committee chief, said, "If necessary, the party will enthusiastically support the government."

The GNP did not forget to remind the public of the fact that the government was to blame for the current economic trouble. Chief policymaker Lee Han-koo said, "The government must disclose the details of the situation confronting the ailing financial institutions and put forward a support plan." He rejected the plan to inject public funds into Hyundai Investment and Trust.

by Lee Yang-soo