Additional public funds raised: FSC

Financial Supervisory Commission (FSC) Chairman Lee Yong-Keun announced in a press conference for the foreign media on July 21st that the government would raise additional public funds this year with approval of the National Assembly if the public funds required for financial restructuring exceed 20 trillion won. He noted that there was no change in the government¡¯s initial stance that it would try to cope with the existing funds by retrieving public funds that have already been injected into financial companies.

Initially it was estimated that the amount of public funds required would be 20 trillion won for this year and 10 trillion won for 2000, and the government planned to meet this demand by retrieving public funds that had been injected or selling non-performing loans that had been acquired by the Korea Asset Management Corp. However, as the amount of public funds that will be needed for aid to banks and financial restructuring is projected to far exceed 20 trillion won, FSC Chairman Lee¡¯s announcement is regarded as a sign that the upcoming regular session of the National Assembly will agree to further use of public funds.