By Lee Hyo-sik
Staff Reporter
Worsening economic hardship is expected to aggravate social unrest next year with more Koreans suffering from rising debts and slow income growth as a result of the tight job market and worsening economic conditions, according to the Samsung Economic Research Institute (SERI) Friday.
To narrow the widening income gap between the haves and have-nots and ease increasing social tension, the institute suggested that the government make all-out efforts to help create jobs and boost social welfare programs to support those in the low-income bracket.
``It is highly likely that social ills will increase because of deteriorating economic conditions. When the economy weakens, many people focus more on maintaining their livelihood, so donations and charitable activities are bound to decrease, leading to increasing social tension,'' SERI researcher Choi Sook-hee said in a report.
She said even though Korea's social safety net has improved since the 1997-98 Asian financial crisis, the number of ``grocery thieves'' and other petty criminals has continued to show an upward curve.
``Crimes related to economic hardship are projected to surge next year. What the government should do is help low-income households by boosting social welfare spending and preventing middle-class families from falling into poverty amid rising unemployment rates and declining asset values,'' Choi said.
The institute also projected that the nation's job market will deteriorate to its worst level in 2009 since the currency crisis a decade ago in the wake of the ongoing global financial crisis and economic downturn, further aggravating social tension.
It said massive layoffs and forced retirements are highly likely as many companies scale down production and downsize workforces to cope with decreased demand. The job insecurity of non-regular and temporary workers will become particularly serious social problems.
``The government is expected to push for the revision of labor laws in the first half of 2009 to protect non-regular workers. Clashes between labor, management and the government over the revision will be inevitable,'' Choi said.
In November, the number of employed totaled 23.8 million, up 78,000 from a year earlier, but down from an increase of 97,000 a month earlier. This was the lowest level since December 2003 when new job offerings stood at only 44,000, and fell far short of the government's target of 200,000 new jobs.
The institute also said consumer spending will decline sharply in 2009 as more people tighten their purse strings on rising debt and weakening job security. ``People will refrain more from expensive leisure activities, reducing spending on travel, entertainment and cultural events. Instead, activities that cost little but offer practical value will increase, including mountain climbing and cycling,'' SERI said.
It said the government's education policies would be another source of rising social conflict between the rich and the poor in 2009. ``Two international middle schools scheduled to open in 2009 will cause a great deal of controversy. Conflicts within education circles will likely erupt over whether they violate principles of equal educational opportunities,'' the institute said.
SERI also said increasing scrutiny of teachers' performance and greater university autonomy in management and admission policies could further aggravate tension among various stakeholders.