Warning on Selling State Firms

The vice minister of the Finance Ministry said Sunday that the sale of public companies should coincide with a strong stock market and that the government is ready to prop up the won. Kim Jin-pyo also said that inflation rates should ease soon.

Mr. Kim said the planned sell-offs of 11 state-run firms could further weaken the market by introducing too many new shares.

Regarding the weakening won, Mr. Kim said that, according to analysts, the won is falling more quickly than the Japanese yen because of speculation in currency exchange markets. He said that Seoul would intervene with appropriate measures if necessary.

The vice minister seemed unworried by signs of rising inflation. "Prices are rising by about 4 percent," Mr. Kim said, "but because the international prices of raw materials are expected to level off and oil prices should stay at about $25 per barrel, inflation should recede to 3 percent."