Gov¡¯t to confirm banking sector reform plan

The government will confirm restructuring plans for unhealthy banks, which do not meet the BIS capital adequacy requirement of 8%, by November, based on operational enhancement evaluations made by the management evaluation committee.

In addition, once the financial holding company bill is passed through the National Assembly, the sizing up and integration of financial institutions through financial holding companies will be completed by next February.

The current 44-hour legal working hour standard will be reduced to 40 hours by next February, and during this time POSCO and Korea Heavy Industries will be privatized.

These plans and the restructuring of the four sectors were confirmed at an economic policy coordination meeting held at Chong Wa Dae, attended by President Kim, with Minister of Finance and Economy Jin Nyum leading.

An official from MOFE revealed that the reform of the four sectors (corporate, labor, public and finance) will be completed by next February, which will be the third year of President Kim¡¯s inauguration, and efforts will be made to allow the market to work on autonomous mechanisms.

Park Won-Jae parkwj@donga.com