1/20 TREASURY SECRETARY RUBIN STATEMENT ON KOREAN REFORMS

[USIA]

USIS Washington File

21 January 1998

TEXT: 1/20 TREASURY SECRETARY RUBIN STATEMENT ON KOREAN REFORMS

(Korean reforms have real impact; much more to be done) (300)

Washington -- "Korea's reforms, launched with the IMF's backing, are
having a real impact in promoting the kinds of adjustments that are
needed to restore confidence and stability," according to Treasury
Secretary Robert Rubin.

In a statement issued January 20 following his meeting in Washington
with a high-level Korean delegation, Rubin added, "As the Korean
delegation acknowledged, however, there is much more to be done and no
room for complacency."

Following is the text of Rubin's statement:

(begin text)

Statement by
Treasury Secretary Robert E. Rubin
Washington, D.C.
January 20, 1998

I had an encouraging meeting with a high-level Korean delegation
today. The Korean government, with the full support of the
President-elect, has actively begun to confront many of its critical
challenges. Korea's reforms, launched with the IMF's backing, are
having a real impact in promoting the kinds of adjustments that are
needed to restore confidence and stability. As the Korean delegation
acknowledged, however, there is much more to be done and no room for
complacency.

I welcome the global effort by private international banks to roll
over existing claims on Korean financial institutions for 90 days. It
is important that all financial institutions with claims on Korean
financial institutions play a constructive role in this process to
provide the breathing space necessary to reach a comprehensive,
longer-term refinancing agreement.

The challenge now is for these institutions to agree on a voluntary
plan that would extend significantly the maturities of foreign claims
on Korean financial institutions and provide access to new sources of
private external finance.

(end text)