FROM THE OFFICE OF PUBLIC AFFAIRS

We have supported a broad international effort to restore stability in Asia. This effort is critically important to U.S. economic and national security interests.

We welcome the steps announced today by the Korean Government to strengthen and accelerate its reform program. These important steps demonstrate the commitment to sustained reform that is essential to a successful program to restore confidence and return Korea to a path of growth and stability.

The reforms undertaken by the Korean government will include: an intensification of efforts to restructure the financial system; a marked acceleration and deepening of the ongoing liberalization of the capital account; market-based measures to encourage a halt to the outflow of short-term capital; and an acceleration of measures to open the economy to imports in order to further competition and efficiency in the domestic economy.

The G-7 and other nations have announced today their support of action to advance by early January existing commitments of official finance, in the context of a sustained commitment by the Korean authorities to implement an intensified program and in the context of a significant voluntary extension of the maturities of existing claims by international bank creditors on Korean financial institutions and adequate progress by Korea toward accessing new sources of private international finance. The United States is prepared to join with the G-7 and other countries in this effort.