The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to President
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to President
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
  • Login
  • Register
  • Login
  • Register
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
  • 1

    Chinese hackers attack 12 Korean academic institutions: KISA

  • 3

    Homeless women struggle to find place to spend night

  • 5

    From period to action: different genre series set for February

  • 7

    More than dozen chaebol scions indicted on alleged drug use

  • 9

    Campaign launched to respect multicultural families, foreign nationals

  • 11

    Netmarble debuts virtual girl group MAVE:

  • 13

    Korea's move to cut subsidies on imported EVs faces backlash

  • 15

    ANALYSISChina's reopening to help ease inventory woes

  • 17

    Lawmaker pushes for bill requiring women to join civil defense training

  • 19

    Seoul subway, bus fares to rise by 300 or 400 won

  • 2

    Koreans stunned by spike in heating costs

  • 4

    Heavy snow hits Seoul, surrounding areas

  • 6

    Chinese hackers threaten to attack S. Korean cybersecurity watchdog

  • 8

    Cold wave warnings issued across Korea; Seoul witnesses coldest day

  • 10

    Why Korea imports so much kimchi from China

  • 12

    Center offers free STI testing to foreign residents of Korea

  • 14

    Cargo ship carrying 22 sinks off Jeju, 14 rescued but 9 unconscious

  • 16

    People attempt to cut surging heating costs with creative solutions

  • 18

    Major Korean banks' overseas branches sanctioned by foreign authorities

  • 20

    Yoon calls for adjusting regulatory, labor systems to global standards

Close scrollclosebutton

Close for 24 hours

Open
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
Fri, January 27, 2023 | 18:06
Economy
Experts agree on Choi's grim outlook
Posted : 2014-07-24 18:39
Updated : 2014-07-25 09:12
Print PreviewPrint Preview
Font Size UpFont Size Up
Font Size DownFont Size Down
  • facebook
  • twitter
  • kakaolink
  • whatsapp
  • reddit
  • mailto
  • link
A woman walks by sale signs at a shopping district, Seoul, Thursday. The government unveiled stimulus plans after the shock of a deadly ferry sinking slowed economic growth to the lowest level in three quarters./ AP-Yonhap
A woman walks by sale signs at a shopping district, Seoul, Thursday. The government unveiled stimulus plans after the shock of a deadly ferry sinking slowed economic growth to the lowest level in three quarters.
/ AP-Yonhap

By Yoon Ja-young


Finance Minister Choi Kyung-hwan voiced concern Thursday that the Korean economy may follow in the path of Japan at the start of its so-called stagnant "lost two decades."

Economists don't disagree

"The minister correctly evaluated the current economy. It is in very bad shape," said Lee Jun-hyup, a research fellow at Hyundai Research Institute.

"If it falls into recession again, the economy will stop its recovery. It is crucial to boost the economy and get it back on track," he said.

Lee represents a lot of other experts when he pointed out that the economy has lost momentum for recovery, and exports, which have sustained the economy, are also facing a global economic slowdown.

The government had previously estimated a 3.9 percent growth for this year, but it lowered the outlook to 3.7 percent, citing a slowdown in exports due to the negative global situation, unstable oil prices, and increasing fluctuations on the foreign exchange market.

The finance minister cited low growth, low inflation and an excessive current account surplus as signs that the country may be falling into the trap Japan got caught in.

Concluding that temporary and partial policy measures would only lead to a vicious contraction circle and fail to boost the economy, Choi has come up with a new policy package that seeks to be a comprehensive "game changer."

Lee positively evaluated the package.

"It seems that Choi included all measures the government can do except for a supplementary budget. It is in the right direction," he said.

However, Lee added that there should be additional measures such as an interest cut by the central bank, as the economy is in such a dire condition.

He said that now the government has moved in the right direction, it should be careful in building up concrete support measures. "Currently they only have direction. The success or failure will be determined after they come up with concrete measures."

Lim Jean, an economist at the Korea Institute of Finance, agreed that the government had taken all the measures it could.

"The biggest problem is the sentiment of the economic players. I think the policy package will help a recovery there," he said.

However, he said the policy package is only a short-term solution aimed at coping with the current economic slowdown, following the April ferry disaster.

"It doesn't solve fundamental problems. In order to not follow in the footsteps of Japan, more fundamental measures should be prepared coping with the problems in the job market and the aging of the society," he said.

A survey of economic experts and ordinary citizens showed that the latter are more pessimistic about the economy.

Two out of three people said the economy had deteriorated compared with 2013.

Economists said that arousing consumer sentiment is most crucial. The government has recognized that stagnant wages are partially responsible for sluggish domestic consumption.

The policy package also tries to solve the problem of non-regular workers, who often get lower wages and fewer benefits compared to regular workers even when they do the same job.

Around 6 million workers, or 25 percent of wage earners here, are non-regular employees.

The government wants to encourage corporate investment as well as channeling gains into households.

For this, the government announced a speeding up of deregulation and support for corporate owners in the transfer of their businesses to their children; while adopting tax measures to induce businesses to pay higher wages and dividends.

Emailyjy@ktimes.co.kr Article ListMore articles by this reporter
 
wooribank
Top 10 Stories
1Koreans stunned by spike in heating costsKoreans stunned by spike in heating costs
2Homeless women struggle to find place to spend night Homeless women struggle to find place to spend night
3People attempt to cut surging heating costs with creative solutions People attempt to cut surging heating costs with creative solutions
4Inflation weighs on households Inflation weighs on households
5Netflix series 'The Glory' draws focus to real school bullying Netflix series 'The Glory' draws focus to real school bullying
6'I was a stock investment addict': psychiatrist seeks to help addicted people through his book 'I was a stock investment addict': psychiatrist seeks to help addicted people through his book
7[INTERVIEW] Partnerships with Korean companies help Delta Air Lines' post-pandemic recovery INTERVIEWPartnerships with Korean companies help Delta Air Lines' post-pandemic recovery
8Korea's GDP shrinks 0.4% in Q4, 1st contraction in 10 quarters Korea's GDP shrinks 0.4% in Q4, 1st contraction in 10 quarters
9Gov't to double subsidies for vulnerable households as energy bills soar Gov't to double subsidies for vulnerable households as energy bills soar
10S. Korea to increase joint air defense exercises following N. Korean drone incursions S. Korea to increase joint air defense exercises following N. Korean drone incursions
Top 5 Entertainment News
1From period to action: different genre series set for FebruaryFrom period to action: different genre series set for February
2Shunsuke Michieda overwhelmed by Korean fans' support for his coming-of-age film Shunsuke Michieda overwhelmed by Korean fans' support for his coming-of-age film
3Yun Hyong-keun's hanji works come under spotlight in Paris for first timeYun Hyong-keun's hanji works come under spotlight in Paris for first time
4Miguel Chevalier's psychedelic digital universe takes audience participation to next level Miguel Chevalier's psychedelic digital universe takes audience participation to next level
5Kim Hyun-joo says humanity is at heart of action film 'Jung_E' Kim Hyun-joo says humanity is at heart of action film 'Jung_E'
DARKROOM
  • Nepal plane crash

    Nepal plane crash

  • Brazil capital uprising

    Brazil capital uprising

  • Happy New Year 2023

    Happy New Year 2023

  • World Cup 2022 Final - Argentina vs France

    World Cup 2022 Final - Argentina vs France

  • World Cup 2022 France vs Morocco

    World Cup 2022 France vs Morocco

wooribank
CEO & Publisher : Oh Young-jin
Digital News Email : webmaster@koreatimes.co.kr
Tel : 02-724-2114
Online newspaper registration No : 서울,아52844
Date of registration : 2020.02.05
Masthead : The Korea Times
Copyright © koreatimes.co.kr. All rights reserved.
  • About Us
  • Introduction
  • History
  • Contact Us
  • Products & Services
  • Subscribe
  • E-paper
  • RSS Service
  • Content Sales
  • Site Map
  • Policy
  • Code of Ethics
  • Ombudsman
  • Privacy Statement
  • Terms of Service
  • Copyright Policy
  • Family Site
  • Hankook Ilbo
  • Dongwha Group