Lee urges `pain-sharing` by banks in return for gov`t bailout

By Yoo Cheong-mo
SEOUL, Oct. 21 (Yonhap) -- President Lee Myung-bak on Tuesday asked domestic banks to implement "pain-sharing" restructuring efforts, including steep pay cuts for their employees, in return for receiving up to US$100 billion in foreign debt guarantees from the government.

"At a weekly Cabinet meeting, President Lee stressed voluntary and pain-sharing
self-rescue efforts by local banks, which have thus far provided their executives
and employees with generous paychecks," presidential spokesman Lee Dong-kwan said
in his daily media briefing.
Lee made the remark after the Cabinet meeting held at the presidential office
Cheong Wa Dae approved the Bank of Korea's plan to guarantee up to $100 billion
in foreign-currency loans to be raised by domestic banks through June next year.
Under the bailout package unveiled Sunday, the central bank, armed with close to
$240 billion in foreign currency reserves, will also supply $30 billion to banks
and exporters in urgent need of dollars.
According to spokesman Lee, the president also emphasized concerted government
and private-sector efforts to improve the nation's employment situation.
"Unemployment is particularly serious among young college graduates, while small
and medium-sized manufacturing companies stricken by chronic manpower shortages
are increasingly dependent on foreign migrant workers," said President Lee.
"More society-wide efforts are needed to persuade young unemployed people to
accept all jobs available at small and medium-sized business entities through
short-term vocational training."
ycm@yna.co.kr
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