Originally published by the Voice of America (www.voanews.com).
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October 19, 2008

S. Korea Announces Emergency Measures To Stem Effects Of US Financial Crisis
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The plan includes a massive guarantee of the country's foreign debt, and
an injection of dollars into the banking system 
South Korea has announced emergency measures to stem the effects of the
U.S.-originated financial crisis. The plan includes a massive guarantee
of the country's foreign debt, and an injection of dollars into the
banking system. VOA's Kurt Achin has more from Seoul.
Exchange rates are reflected on a window at the Korea Exchange Bank in
Seoul, South Korea, 17 Oct 2008

The centerpiece of the South Korean emergency response plan is a $100
billion guarantee of the country's foreign debts. Top officials from
South Korea's three main government financial agencies-- the Ministry of
Strategy and Finance, the Bank of Korea, and the Financial Services
Commission-- announced the plan Sunday. Minister of Strategy and Finance
Kang Man-soo says Seoul will provide the bank guarantees as soon as
possible after approval from the National Assembly, the country's
parliament. In the interim, he says, South Korea's main state-run banks
will guarantee the loans. South Korea will also provide $30 billion to
banks and exporters from its supply of foreign currency reserves. South
Korea's economy is the fourth largest in Asia, and is heavily dependent
on international business transacted mainly in dollars. However, a
global crisis of confidence resulting from U.S. bank failures has led to
a dollar shortage-- as many institutions hoard U.S. currency and refuse
to lend to each other. South Korea's currency, the won, has dropped in
value nearly 30 percent this year against the dollar. South Korea's main
stock index has fallen 38 percent this year, mirroring the stock plunge
on Wall Street. Finance Minister Kang says quick action will be required
in the days ahead. He says if we take our time in the global financial
market, South Korean banks could be discriminated against or could find
themselves in a difficult situation. South Korean officials say the
country's economy is fundamentally sound, and that its more than a
quarter trillion dollars in foreign reserves puts it in a good position
to deal with the crisis. 


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