PM calls for int'l cooperation to overcome financial crisis

By Lee Joon-seung

SEOUL, Oct. 10 (Yonhap) -- South Korea must seek closer international cooperation to overcome the current financial crisis rocking its economy, Prime Minister Han Seung-soo said Friday.

He said in a meeting of top economic policymakers that foreign media have not
accurately reflected the country's economic circumstances, resulting in
unfavorable coverage.
In order to correct such views, South Korea must inform the world that its
economic fundamentals are sound, he said.
Han urged Finance Minister Kang Man-soo and Bank of Korea (BOK) Governor Lee
Seong-tae to emphasize this during their attendance at the annual World Bank
Group and International Monetary Fund (IMF) meeting that kicks off in Washington
on Saturday.
He added that once the present financial crisis is stabilized, a new
international order may be established to enhance overall health and governance.
"There is a need to gauge what the new financial order will look like, so South
Korea can be in a good position to meet the changing requirements," Han said.
He emphasized that greater effort must be made for the ratification of a free
trade agreement with the United States that was signed last year.
"There is a chance that the global economy will contract as a result of the
financial crisis making the bilateral FTA all the more important," he said.
Cho Won-dong, head of the government management office, said after the meeting
that both Kang and Lee will be present at the Group of Twenty (G-20) meeting
which is part of the IMF-World Bank gathering.
This year's gathering begins Saturday and is highly anticipated as participants
are expected to discuss the reorganizing of the post-financial crisis world
order.
The G20 was established in 1999 and is made up of finance ministers and central
bank governors from member countries, including South Korea, the United Kingdom,
the United States and the European Union. Seoul is scheduled to chair the meeting
in November.
Cho noted that top South Korean poliycmakers concurred the country will likely
post a trade surplus in October and for the whole of the fourth quarter. They
note this should help stabilize fluctuations in the exchange rate that are
fueling uncertainty.
"Governor Lee and Knowledge Economy Minister Lee Youn-ho expressed confidence the
country will post a trade surplus this month, and that there is little shortage
of liquidity in the domestic market," Cho said.
He pointed out, however, that due to external volatility affecting the local
market all economic policymaking authorities must coordinate to monitor and
respond quickly to sudden changes.
The Ministry of Strategy and Finance, meanwhile, said Kang will engage in talks
with his Japanese counterpart on the sidelines of the IMF gathering that will
touch on the creation of an US$80 billion joint fund to counter slowdown in the
global economy.
He will also meet with representatives of sovereign rating firms like S&P and
Moody's and hold talks with executives of HSBC, JP Morgan and Credit Suisse,
while taking part in a press conference highlighting South Korea's general
economic health, the ministry said.
The early morning meeting held at the prime minister's residence was attended by
the finance minister, the BOK governor, the knowledge economy minister, a top
economic adviser to the president and vice chairman of the Financial Services
Commission.