Rumors over 'September crisis' proven groundless: finance minister

SEOUL, Sept. 12 (Yonhap) -- Rumors that South Korea would face a repeat of the 1997-98 financial crisis turned out to be groundless, Finance Minister Kang Man-soo said Friday.

"The rumors of a 'September crisis' turned out to be no more than
that," Kang told reporters at a weekly government meeting. "Though many
difficulties are still in place, things are getting under control."

The comments come after South Korea had been gripped for months by fears that its
economy might face a crisis similar to the one it suffered a decade ago if
foreign investors withdrew their money in droves from the local bond markets.

Causes for concern included a possible capital exodus earlier this week, when
massive amounts of bonds were scheduled to mature. No such capital flight took
place, according to market watchers.

The minister forecast that the nation's economy will rebound from the second half
of next year. He added that the government will determine and announce its 2009
budget plan in a few weeks, aimed mostly at generating jobs and strengthening the
nation's growth potential.