Committee Gets New Powers On Bailouts of Financial Firms

Korea Deposit Management Corporation will strengthen the role of its administrative panel on decisions to supply public funds to troubled financial institutions.

Addressing the National Assembly's Finance and Economy Committee, Jin Nyum, minister of finance and economy said Friday that the Financial Supervisor Service will be obliged to submit to Korea Deposit Management Corporation all audits on financial companies' assets and debts plus recommendations on whether to provide support to the companies. The minister said the move is intended to strengthen the administrative committee's inspection function.

Mr. Jin said the government has spent 129 trillion won ($153 billion) to shore up financial institutions, and from now on the newly established so called Pubic Funds Management Committee will report quarterly to the National Assembly on how the public funds are used. The committee was created early this month to oversee management of the expenditure of public funds. The committee will be led by the minister and nongovernment officials recommended by various institutions.

An official of the government-owned corporation said it will hold meetings twice a month and publish the minutes on the Internet.

by Suh Kyong-ho