S. Korean Kim vows to stick to IMF terms
S. Korean Kim vows to stick to IMF terms
SEOUL (AFP): South Korean president-elect Kim Dae-jung pledged yesterday to stick to a harsh International Monetary Fund (IMF) prescription and called for help in hauling South Korea out of its financial crisis.
Addressing an Asia-Pacific Parliamentary Forum (APPF) meeting here overshadowed by the region's financial woes, Kim, 74, also pledged to try to improve ties with communist North Korea.
"Like Korea, many Asian countries appear to be experiencing economic difficulties which have stemmed from the current financial crisis.
"There is no doubt that close cooperation among countries in this region is a prerequisite for overcoming these difficulties," Kim said as his envoys were in Europe, the United States and Japan pleading for a rescheduling of mountains of short-term loans.
"I sincerely hope you will come forward to provide your valuable assistance to our economy so that Korea can proceed to do its part in contributing to international prosperity," he said.
Lambasting collusion between big business conglomerates and past governments as being at the root of the South Korean crisis, the former opposition dissident said Seoul was facing "enormous economic difficulties".
"The underlying cause of the crisis, in my view, lies in the collusive relations between government and business, an economy dictated by bureaucrats, corruption and malpractice on the part of the chaebols (conglomerates).
"Above all, democracy was not conducted in a proper manner," Kim said.
"I will reform the very fabric of our economy while strictly adhering to the agreements reached between Korea and the IMF," he said, adding that the reforms would be in keeping with international practices to enhance global confidence.
Speaking as South Koreans queued at banks and department stores in sub-zero temperatures to hand in gold trinkets in answer to a government gold collection drive to help solve the crisis, Kim said he felt sure "patriotism and determination" would help pull South Korea out of the crisis.
"The new government which I am about to head will devote itself to tackling the current economic crisis by thoroughly abiding by the principles of a free market economy in close cooperation with the international community," he said.
On North Korea, Kim, who takes office on Feb. 25, said he would continue to try to implement an almost-defunct 1991/1992 agreement which called for reconciliation, nonaggression and increased North-South exchanges.
"I would like to take this opportunity to call on the North Korean authorities to resume the North-South dialog so that both Koreas may produce concrete measures for implementing the basic agreement," he said.