tools of communication so as to better convey to the market the substance and background of our policy decisions. nor should we neglect efforts to prepare for the day when unification comes. we must carry out detailed analyses of the major issues pertaining to finance and the economy during unification, including currency integration, and explore effective policy options. fellow members of the bank of korea staff, we must above all brace ourselves anew to carry out our duties, so that the bank of korea can develop further as a policy institution enjoying public confidence in the current situation where our economy is facing difficulties and policy conditions are shifting rapidly. as a first step, it will be desirable for us all to carry out our tasks with active and progressive attitudes. recently the public ’ s expectations regarding expansion of the role of the bank of korea have been gradually growing larger. and before being told what to do by the public, we must ourselves actively examine the best ways of contributing to the development of our national economy, and incorporate them into our policy operations. we will also need to strive harder to enhance our expertise. it is no exaggeration to say that a central bank ’ s competitiveness lies in its acquisition of high degrees of expertise in the research and policy fields. we need to examine objectively whether our economic analysis and forecasting techniques and methods of operating our policy instruments, which were evaluated highly in the past, are still as effective in this transformed economic environment. we will be called upon to act boldly to carry out any related improvements, as and where needed. last but not least, we will need to foster mutual trust and harmony. we should bear firmly in mind that it is the creation of the sense of unity among our staff that drives the development of the bank. even while competing in good faith with other departments and colleagues, we must never lose a spirit of mutual regard and cooperation. my dear fellow members of the bank of korea staff, the recent tragic sewol accident has come as a painful lesson to us all, of the type of tragedy that can occur if each member of society does not fulfil his or her given duties and responsibilities. we should take this opportunity to look back objectively, to see whether we bis central bankers ’ speeches have been fully carrying out the tasks entrusted to us as members of an important policy institution charged with one major aspect of the national economy. i would urge you all to do your very best in carrying out the duties entrusted to you, imbued with a sense of duty

), accounting ( international accounting standards committee ), auditing ( international federation of accountants ), bankruptcy ( united nations commission on international trade law ) and corporate governance ( oecd, world bank and basle committee ). in addition, work relating to improving the robustness of payments systems, general principles of good practices in social policies, identifying practices and structures that support deep and liquid forward markets is in progress. it would be interesting to see how these standards evolve. while it may not be possible for all countries to adopt these standards completely and promptly, countries will have to take account of these standards, depending on individual country circumstances. increasingly, these international standards will have to be adapted to suit local requirements. these will have an impact on our corporates trying to access international markets in terms of costs and regulatory compliance. corporates will need to impute these into their debt management strategies. role of the private sector in forestalling a crisis the efforts to involve the private sector in debt management have many objectives, viz., bring about a more orderly adjustment process, limit moral hazard, strengthen market discipline, help protect countries against volatility and contagion. the idea is to have mechanisms in place before any crisis takes place – so that resolution of the crisis is more orderly. while there is consensus regarding the need for the private sector to share the burden, discussions in the various fora have centred on the mode of burden sharing. ideas that are being considered include contingent credit lines, embedded call options, debt - service insurance, bond covenants, bankruptcy procedures, debt standstill and creditor - debtor councils. basically, these mechanisms bind private sector participants to either provide additional funds, or reduce debt service burdens in times of crisis without creating moral hazard or disrupting the normal market conditions. for instance, countries could contract market - based contingent credit lines with commercial banks to trigger liquidity support in times of crisis. if the credit lines are fairly priced, they could provide effective insurance against adverse market developments. call options on interbank credit lines would provide the basis for the extension of maturities during times of trouble. standstill arrangements will allow the private sector to give additional borrowing when there has been a default on existing debt. creditordebtor councils could serve to improve the flow of information. bond and debt covenants could introduce sharing clauses, provisions for the modification of terms by qualified majorities will speed up the negotiation process. there is also a suggestion that the g - 10