Lee Describes Swap Deal as Fruit of Korea-US Alliance
By Na Jeong-ju
Staff Reporter
Cheong Wa Dae hailed the currency swap deal between South Korea and the United States as the ``fruit'' of a closer alliance between them. The U.S. Federal Reserve announced Wednesday that it would sign a currency swap arrangement of up to $30 billion each with four emerging markets ― South Korea, Mexico, Brazil and Singapore.
``Without the close alliance between South Korea and the U.S., such a bilateral currency swap deal hardly could have been expected,'' Cheong Wa Dae spokesman Lee Dong-kwan said.
``The deal has once again demonstrated the importance of summit diplomacy,'' said the spokesman, referring to President Lee Myung-bak's summits and telephone talks with U.S. President George W. Bush.
Spokesman Lee called the currency swap deal the ``fourth gift'' from the United States, following the revision of the bilateral beef trade deal, Washington's pro-Korean stance on the South Korean islets of Dokdo claimed by Japan, and Bush's invitation to President Lee to join the Group of 20 financial summit in Washington on Nov. 15.
President Lee said Thursday his administration will take ``bold'' measures to boost consumption as part of efforts to protect the domestic economy from the fallout of the global financial crisis.
``Revitalizing domestic consumption is crucial to revitalizing the economy,'' Lee said during a meeting of the presidential advisory committee on national competitiveness. ``The economy is exposed to greater risks due to external factors, but we need to take bold and decisive measures to boost consumption.''
The remarks came as analysts have voiced concerns about a global economic hard landing. Institutes have cut their forecasts for the country's growth rate next year in line with expectations of slower exports growth and weaker consumer demand.
Consumer sentiment here has been severely dampened by asset deflation and growing jitters over a recession. The Bank of Korea said Tuesday its consumer survey index, measuring overall consumer sentiment, fell to 88 in the third quarter from 96 in the second quarter.
Lee instructed officials to step up efforts to ease regulations, saying corporate investment will rise once the government creates a better business environment. He also said his administration will focus on balanced regional development, public sector reform and labor-management relations to help the country tide over the economic challenges.
``My administration is making all possible efforts to minimize the fallout of external negatives. National competitiveness will improve significantly if our plans are successfully carried out,'' Lee said.