By Yoon Ja-young
Staff Reporter
Strategy and Finance Minister-designate Yoon Jeung-hyun told the National Assembly, Friday that his ministry would conservatively manage foreign exchange reserves.
``I plan to give special attention and take care in this regard. The economy, highly dependent on external factors, has structural problems there,'' Yoon said at a confirmation hearing, Friday, agreeing with Rep. Kim Song-sik of the Grand National Party when the lawmaker pointed out that the government shouldn't be wasting money intervening in the foreign exchange market.
When the lawmaker asked again if he means to conservatively manage the foreign exchange policy, Yoon answered ``Yes.''
His predecessor Kang Man-soo was heavily criticized for a hawkish stance in foreign exchange policy, first pulling up the won/dollar rate through verbal intervention to boost the economy and later having to squander dollars to pull down the skyrocketing rate. The market's distrust of Kang pressured President Lee Myung-bak to replace the minister. Yoon emphasized recovering trust of the market through consistent policies.
Yoon said he is going in the same direction as President Lee in economic policy, when asked whether serving two presidents with different philosophies would matter. Yoon, who was nominated to replace Kang in late January, had served as head of the Financial Supervisory Commission during former President Roh Moo-hyun's administration.
The minister nominee implied the easing of regulations on real estate. ``The real estate market is needed for recovery of the construction sector and job creation,'' Yoon said.
He said the three percent economic growth estimation seems difficult to achieve now. ``I strongly feel the need to change the estimation,'' he said. The International Monetary Fund (IMF) recently estimated that the Korean economy would record minus four percent growth this year.
Yoon said job creation would be the first priority in his economic policy.
Regarding the restriction on conglomerates from owning banks, Yoon said it should be eased to rationalize asset allocation and get rid of reverse discrimination on domestic players. As foreign entities became major shareholders of big banks after the Asian financial crisis, there followed complaints that local lenders are being handed over to foreigners as conglomerates are banned from owning banks.