FROM THE OFFICE OF PUBLIC AFFAIRS

I welcome the agreement announced last night between Korea and its major international creditors on a proposal to refinance a significant portion of Korea's debt coming due this year.

Since December, Korea has taken a series of actions to implement its IMF-backed reform program with the full support of the President-elect. As a result of these steps and voluntary efforts by major international banks to roll over their short term claims on Korean financial institutions, financial stability and confidence have begun to return to Korea. Korea must now sustain this effort as it confronts the challenges that lie ahead in restructuring its economic system.

Yesterday's agreement represents an important step toward promoting a durable solution to Korea's financing situation. A satisfactory conclusion of a comprehensive agreement to refinance and extend existing claims, together with a successful effort to raise new money, will move Korea significantly forward on the road to financial viability. body