Attack, Counterattack: Assembly Session Turns Into Fight Over Economy

Different opinions of the severity of the nation's economic problems sparked a partisan spat on Tuesday during a parliamentary interpellation session.

Opposition lawmakers decried the current situation as the "second coming" of the 1997 financial crisis that prompted Seoul to seek a $58-billion bailout from the International Monetary Fund. Ruling party lawmakers said they were overly concerned.

The disagreement centered on the government's recent announcement of 800 billion won ($640 million) in new loans to the ailing Hyundai Group, an economic stimulus package and Seoul's predictions of eminent economic recovery.

"Deputy Prime Minister Jin Nyum said several months ago that new loans would not be given to Hyundai," Rep. Lee Sang-deuk of the opposition Grand National Party asserted.

Another opposition legislator, Lee Hahn-koo, demanded that authorities investigate possible rigging of financial records by Hyundai affiliates. He lashed out at the government for promoting the group's "not feasible" self-help measures.

Opposition lawmakers also attacked the government's plan to stimulate the stock market, which would increase stock investment by major pensions to 25 trillion won, as an attempt to woo voters in local elections, slated for June 2002.

Ruling party lawmakers shot back, arguing that long-term stimulus measures must be taken now.

Jin Nyum, deputy prime minister for economy, defended the current plan, but added that "there will be no new stimulus measures for the time being."

Ruling party lawmakers remained mostly silent on the issue of fresh loans to the Hyundai Group.

Opposition legislators also challenged the official economic forecast of a recovery starting in the second quarter of this year, saying with high national debt, a recovery is not likely that soon.

Mr. Jin, however, said that the economy could grow 5 percent to 6 percent in the second half of the year without fueling inflation.

by Lee Yang-soo