International financier Mr George Soros, speaking in a new role as "informal advisor" to Seoul, said yesterday that South Korea needed new equity investment and not loans to overcome its financial crisis.
In order to attract investment, Seoul must embark on a painful and drastic revamp of the whole economy, Mr Soros told a press conference after spending two days in talks with president-elect Kim Dae-Jung and his economic team.
Mr Soros, whose investments have been blamed by some, including Malaysian Prime Minister Mahathir Mohamad, as being one of the "devils" in Asia's financial crisis, said he had acted as a sort of "unofficial advisor" to Mr Kim at his request and "may" continue to do so.
To attract equity capital there must be more mobility in the labour market, South Korea's industry - which now had "untenable" debt-equity ratios - must make accounting practices transparent including cross support by subsidiaries, and the financial sector must undergo a major overhaul, he said.
Meanwhile, the Thai Finance Minister Mr Tarrin Nimmanahaeminda will travel to the United States this month to seek a review of the terms of the International Monetary Fund's $17.2 billion rescue package, senior offcials said yesterday.
Prime Minister's Office Minister Mr Abhisit Vejjajiva said Tarrin would go to Washington to meet top IMF officials to discuss Thailand's progress in achieving a cash surplus this financial year equivalent to one percent of gross domestic product.
A government spokesman Mr Akapol Sorasuchart said Mr Tarrin would ask the IMF to consider the ongoing financial turmoil in south east Asia.
He insisted that Thailand would not seek additional funds to bail out its stricken economy, which is in the midst of the worst slump it has experienced in more than 50 years.
Analysts have repeatedly said Thailand would need more capital to relieve the liquidity crunch which is strangling economic growth and hindering the export sector's ability to trade the country out of trouble.
