To Save Reforms, Kim Asks Speed-up in Restructuring

With his reform program seriously dented by the ongoing scandal revealing corrupt practices at the nation's financial watchdog, President Kim Dae-jung urged economic policymakers on Tuesday to determine the fate of companies under debt-restructuring programs earlier than planned.

The original schedule called for decisions by the end of the year but the president asked for them this week or next.

"Based on a firm principle, we should speedily determine which firms to resuscitate and which firms to fold," the president said while meeting with top economic policymakers, including Lee Keun-young, chairman of the Financial Supervisory Service.

Mr. Kim's remarks were regarded as reaffirming the government's commitment to see through economic reforms, especially those in the financial sector.

"His remarks suggest that the government will decide on the fate of firms under debt-restructuring, such as Hyundai Construction Co., in a transparent and fair manner," the presidential spokesman, Park Joon-young, said.

The meeting was the first between the president and economic policymakers since the Dong Ah and Hyundai Construction companies, formerly high-flying affiliates of large conglomerates, neared collapse. Dong Ah plans to file for court receivership Wednesday. The meeting was also the first since the loan scandal became public last week.

Mr. Kim rebuked the officials at the meeting for rocking the public's belief in the reform program, his spokesman said.

At the same time, the president put his weight behind the watchdog body, asking it to completely reinvent itself so that it can proceed with reforms of the financial sector.

Mr. Kim's program faces a crisis over the illegal loan scandal. Officials of the Financial Supervisory Service have been accused of receiving kickbacks for lax supervision.

The financial watchdog has been the central agent pushing reforms for the past two years.

by Kim Jin-kook