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| China-Japan-Koreas |
| South Korea Says No Need to Tap IMF for Funding |
| 2008-11-16 |
| WASHINGTON -- South Korea sees no need to tap the International Monetary Fund for funding, a senior official from the country's finance ministry said Saturday. Speaking to foreign press following the conclusion of the Group of 20's first summit in Washington, Shin Je-Yoon, deputy minister for international affairs, said that asking IMF for aid was still a stigma in the Asian nation, which was given an IMF bailout during a financial crisis in the late 1990s. Though he acknowledged the IMF has extended loans to needy nations without the tough conditions attached in previous crisis, seeking aid from the IMF is still hard for Koreans to accept, he said. "It is not a good impression," said Shin, adding that such a move may generate a public backlash. Besides, he noted, the nation has accumulated a large amount of foreign reserves as a "first line of defense." Also, the nation has entered into currency swap lines with the U.S., China and Japan for much-needed dollars. South Korea has been suffering from a dollar squeeze in recent months due to strains in the money market. Shin acknowledged that outflows from the stock market may continue, but he doesn't expect anything "drastic." He also said the economy was under pressure as the nation's exports feel the pinch from the crisis and global downturn. To spur growth, the government has cut interest rates and implemented fiscal stimulus. Shin said the door remains open for further fiscal stimulus, and the government still has much room to implement fiscal measures. |
| Posted by:Steve White |