Financial turmoil to continue till H1 of 2009: minister

SEOUL, Oct. 23 (Yonhap) -- The current financial turmoil will likely continue until the end of the first half of next year and South Korea's government is making efforts to prevent the crisis from affecting the nation's real economy, the top financial policymaker said Thursday.

"It is anyone's guess when the current financial turmoil will come to an end but
according to a worst scenario, it could continue until the end of the first half
of next year," Finance Minister Kang Man-soo told parliament.
"The loan guarantee measures announced on Sunday are mainly designed to stabilize
instability in the financial sector. To stem affects on the real economy, the
government is now considering budget spending, tax cuts and other stepped-up
fiscal polices," Kang added.
South Korea unveiled a US$130 billion package to provide state guarantees for
banks' foreign debts and to help ease dollar funding shortages in the financial
sector. The move comes as nations across the globe are grappling with the
financial turmoil.
Kang called the rescue plan a "preemptive" measure to stave off a crisis and said
that the government will work hard not to transfer related costs to taxpayers.
South Korea's financial markets have been undergoing a roller-coaster session
since last month when major American investment banks collapsed. The local
currency has lost 31 percent against the U.S. dollar so far this year and the
nation's benchmark KOSPI plunged to a three-year low on Wednesday.
kokobj@yna.co.kr
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