Posted April. 24, 2003 22:04,
Lee Hun-jae, former finance and economy minister, strongly criticized the new government for its vague economic policies and pro-labor position.
At the first general meeting of the Woori Diamond Club organized by Woori Bank at the Shilla Hotel Thursday, the former finance and economy minister said, "Problems in the new government`s policy lines are causing uncertainty at the market. In particular, its pro-labor position shown at the recent crisis over railroad workers strike is aggravating market uncertainty."
"Though the incoming government appointed moderate figures, such as Finance and Economy Minister Kim Jin-pyo and Financial Supervisory Commission Lee Jung-jae, to stabilize the market, the market is not showing confidence in the government`s policy line," he said.
However, he added that if the government sends a signal, such as pushing for projects to attract foreign investment or to privatize power generation facilities, the market could stabilize around next month when the president visits Washington.
He also criticized the government for its slow response to the ailing credit card companies and other economic problems.
"Last year when consumption picked up, the government should have raised interest rates and reduce government spending. But it did the other way around. This year, it did not cut rates when it should do, and it procrastinated when government spending was necessary," he said.
"Though it is difficult to expect that the Korean economy will rebound rapidly, it will not worsen, either if the conditions at home and abroad maintain the current level. Though the government should be cautious against possible credit crunch related to the real estate market, the stock market and credit card, at the same time it should not cause more problems by taking hasty measures," he said.
Regarding the North Korea nuclear crisis, the former minister added that negotiations over this issue would continue for a long time and that for the time being it would have an impact on the domestic financial market and the investment environment. But he predicted that a U.S. war with Pyongyang would not occur.
Serving as chief of the Financial Supervisory Commission and minister of Finance and Economy under the Kim Dae-jung government, he led corporate and financial sector restructuring.