In brief

Business Asia, May 31, 1999

* Seoul -- The current rally in the stock markets of South Korea and South East Asia is not a bubble but backed up by the growth potential of these markets that has attracted large amounts of investment funds at home and abroad, a think-tank claims. The Korea Institute of Economy and Policy (KIEP), in a report on world economic flows, said short-term investment funds would continue to flow into these markets because the uncertainty in the global financial market would not clear for some time in the future.-- Asia Pulse

* Manila -- The Philippines Securities and Exchange Commission (SEC) says it has formally approved a rehabilitation plan for Philippine Airlines (PAL) following its acceptance by a majority of its creditors. However, the approval was made on the condition that the capital infusion of US$200 million the airline needs to set the plan into motion will be committed not later than June 4. A statement from the SEC said creditors holding claims to 55 per cent of PAL's total US$2.2 billion debt accepted the plan.

* Beijing -- China will lift restrictions on the requirements for approval of foreign-funded trade firms, allow foreign travel agencies to launch joint ventures and permit foreign banks to open business offices, said Mr Hu Jingyan, deputy director of the Foreign Investment Department of the Ministry of Foreign Trade and Economic Cooperation (MOFTEC). Mr Hu said China had also worked out new regulations concerning the opening up of the retail sector. Official figures show that China approved 19,799 foreign-funded firms in 1998, while contractual foreign investment was US$52.102 billion, up 2.15 per cent from 1997.-- Asia Pulse