Seoul Eyes New Steps To Lift Korea Economy

The government will draw up a package of measures by June to stimulate the nation's sagging economy, which may include lowering the economic growth target, Finance and Economy Minister Jin Nyum said during a weekend meeting with President Kim Dae-jung.

Mr. Jin told the president that the government will examine the current financial and corporate restructuring system and speed up the handling of ailing companies.

Mr. Jin said that the ministry may adjust macroeconomic indices such as economic growth rate, consumer prices and unemployment rate in June's economic outlook, reflecting developments for the five months to May. It was the first time that the government officially raised the possibility of changing annual macroeconomic indices.

The government had initially aimed at economic growth of 5 percent to 6 percent, with inflation and unemployment rates of 3 percent each.

Calling the next three months "an emergency period," when internal and external economic factors are expected to remain volatile, the government planned sessions every week to check the global economic trend, he noted.

The government also will step up efforts to sell Korea Life Insurance Co. and to attract foreign investment into debt-ridden Hyundai Investment Trust Management Co. The government and the American Insurance Group, a U.S. insurer, have been in talks for months to jointly invest in the financial unit of the Hyundai Group.

In order to stabilize consumer prices, the government will keep a rein on fees for public utilities, including tap water and sewage, Mr. Jin told President Kim.

It will also come up with measures this month to train information-technology specialists and improve the unemployment insurance system to ease manpower shortages at small businesses.

President Kim told the minister to counter any developments that could destabilize the won-dollar exchange rate, consumer prices and interest rates.

by Kim Hyun-chul