Confidence Ebbs Further in Seoul --- Won Continues Fall; Two Banks May Shut Without Fresh Capital

SEOUL, South Korea -- A scramble to obtain dollars pushed the South Korean currency to yet another low Thursday morning as investors continued to lose confidence in Seoul's ability to stem a worsening financial crisis. Reacting to the growing market turmoil, President Kim Young Sam urged self-s...

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Published inThe Wall Street journal. Eastern edition
Main Author By Michael Schuman and Chang Woo Hyuk
Format Newspaper Article
LanguageEnglish
Published New York, N.Y Dow Jones & Company Inc 11.12.1997
EditionEastern edition
Subjects
Bailouts
Banking industry
Commercial banks
Economic conditions
Economic reform
Executives
Foreign exchange rates
Kim Young Sam
Lee Kyung Shik
Merchant banks
Presidents
Resignations
South Korea
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Summary:SEOUL, South Korea -- A scramble to obtain dollars pushed the South Korean currency to yet another low Thursday morning as investors continued to lose confidence in Seoul's ability to stem a worsening financial crisis. Reacting to the growing market turmoil, President Kim Young Sam urged self-sacrifice to salvage the economy, and the central-bank governor reportedly resigned. In a national address early today, President Kim assumed responsibility for a crisis that has intensified despite the $57 billion bailout package for Korea arranged by the International Monetary Fund last week. He promised to carry out painful reforms prescribed by the IMF, saying doing so was the only way to restore international confidence. "If not, a larger crisis may be looming," he warned. "Two large commercial banks in distress" must find a partner willing to provide new capital or get rid of their unprofitable businesses or be closed, according to an IMF report, which appears to describe an unpublished side agreement to the IMF-led $57 billion package of emergency credit to South Korea.
ISSN:0099-9660