Lee Appeals for Calm Reaction to Turmoil
By Na Jeong-ju
Staff Reporter
President Lee Myung-bak called for lending institutions to be more active in resolving liquidity problems at firms, saying Monday that the Korean economy was strong enough to rise above the global financial crisis.
In his first nationwide radio address, Lee forecast the country's current account will swing back to a surplus in the fourth quarter. He also added Korea was maintaining close policy coordination with the international community to overcome the crisis.
``During a financial crisis, many firms have to shut down because of short-term liquidity problems even though their sales remain strong,'' Lee said. ``Lenders should be more active in saving such firms. Lenders should not take umbrellas away from the companies when it rains.''
The main opposition Democratic Party (DP) criticized the Lee administration for inflating the problems by maintaining growth-oriented policies.
``Lee's address is out of touch with reality. Lee should be held responsible for deepening the crisis with his weak-won and growth-first economic policies,'' DP Chairman Rep. Chung Sye-kyun said. ``Lee should sack Strategy and Finance Minister Kang Man-soo and overhaul the country's economic control tower immediately.''
President Lee stressed that mutual confidence between the government and the public was the most important factor in overcoming the financial troubles and proposed that private enterprises, financial institutions, politicians and all other parties faithfully play their own roles.
``The government will transparently disclose all information regarding financial markets and economic conditions and take proper countermeasures. We are also strengthening policy coordination with the world's economic superpowers,'' said Lee.
He then urged private enterprises to expand investments ``to become a winner in the future.''
``Any private companies choosing to increase investment to create more jobs are the true patriots. Domestic financial institutions are also asked to ensure that profitable and competitive business entities do not go bankrupt due to temporary liquidity problems.''
Lee said the financial health of private companies and financial institutions has remarkably improved over the past decade. He urged the nation to react calmly to the global turmoil as Korea's foreign currency reserves, totaling $240 billion, are enough to overcome liquidity problems.
Cheong Wa Dae plans to make the radio address every two weeks to seek public understanding of state policies and to appeal for national unity to tide over the ongoing economic troubles.
The presidential office got inspiration from ``fireside chats,'' the radio speeches given by then U.S. President Franklin Roosevelt to the citizens of New York during the Great Depression in the 1930s to seek public support for his economic recovery programs.
Lee's speech was tape-recorded before being delivered to radio stations.