Minister of Strategy and Finance Man-soo Kang of Korea, South
Prior to the swap deal, Kang had been under pressure to step down for his misguided foreign exchange policy.
Kang is at the main control tower of the nation's economic policies, but his inconsistent policies have eroded his credibility in the market.
The ministry said that Kang took the initiative in reaching the agreement and his behind-the-scene contact with the US.
No matter which organization played the key role in the swap deal, it seems that the finance ministry's foul play to save Minister Kang is where the blame should lie.
foreign borrowing by local financial institutions.
This is not the first time that Kang has been in trouble.
Kang was "saved," however, when the currency swap deal with the United States was signed at the end of last month.
Kang took credit for arranging the deal and President Lee Myung-bak heaped praises on Kang, a man whose future, just days earlier, seemed uncertain.
The whole global economy faces difficulties, but the South Korean economy will begin to recover gradually in the second half," Kang said Saturday in a panel discussion broadcast on KBS television in Seoul.
We will do all we can to help the economy if needed," Kang said Saturday.
Economic growth shrank in the fourth quarter, Kang said Saturday, without elaborating.
difference between the benchmarks in South Korea and the US.
than other Asian currencies in previous years.
percent last year, has ``entered a downturn.
Kang said Seoul was ready to take "preemptive, swift and sufficient" measures to calm the foreign exchange market.
Last month, Kang had forecast a growth rate of below 4 percent for next year for Asia's fourth-largest economy.
Kang said on Wednesday that growth could slow to the three percent range and inflation may exceed six percent if oil prices exceed 150 US.
Monetary policy tightening would make the government growth targets even less attainable and Kang has argued in the past a rate rise would do little to rein in inflation driven by high costs of imported fuels and food.
Kang said the decision, which was a stark shift away from a policy early this year of holding down the currency to narrow the current account deficit, was aimed at dealing with an exceptionally strong inflation.
Kang has also suggested the fund be implemented early.
I think Ive made the right decision," Kang said of the 6 billion won (US$5.
So far, Kang has brought all of his products made in North Korea to South Korea for sale, but plans to export some of the products to Europe, Japan, Southeast Asia and possibly the United States.
Kang said in April that it will be “difficult” to meet the government’s 2008 annual economic-growth target of 6 percent.
Separately, FinanceMinisterKang is likely to stay in his job in a cabinet reshuffle expected next week, Internet news provider MoneyToday reported this week.
Ahead of the meeting, Kang is to attend the finance minister's conference of the Associations of Southeast Asian Nations (ASEAN), and South Korea, Japan and China or the so-called "ASEAN plus three" meeting to be held in the same city on Sunday.
Kang said that the global financial system is stabilizing at a fast pace since the collapse of Lehman, once the US.
Speaking at an investor presentation in London last month, Kang said that MBnomics had seven core principles including competition, policies based on economic rationale rather than political consideration and regulatory reform.
Kang says that president Lees administration, which took office on February 25, is also committed to privatization, foreign exchange liberalization and encouraging local institutions such as the Korea Investment Corporation, which invested $2 billion in Merrill Lynch in January to become more competitive globally.
However, when Kang was pressed on some of these plans in the question-and-answer session that followed he was less forthcoming.
Business leaders and market observers believe Kang is responsible for failed economic policy and it makes no sense that he is being kept around.
Kang has the most responsibility to bear.
Rather, it is likely that President Lee decided to keep Kang on board because his philosophy of people management is that people grow when they’ve suffered, and because Kang is a political comrade and fellow member of Somang Church.
Finance Minister Kang has admitted the country would find it difficult to achieve the 6 percent growth target this year in the face of a global slowdown and high raw materials prices.