By Jane Han
Staff Reporter
The vice chairman of the country's most influential business lobbying group said Tuesday that the Samsung scandal and fadeout of the global economic boom will dampen the domestic economy next year, impeding the country's growth from reaching 5 percent.
Although many local think tanks are painting a rosy picture for next year on the recovery of domestic demand and export, many obstacles lie ahead, Lee Yoon-ho, vice chairman of the Federation of Korean Industries, told reporters during a year-end speech at a media dinner.
He exemplified the grave possibility of the world's economic cycle of boom and bust taking a negative turn and lack of domestic growth potential as the most foreseeable concerns.
``Considering the turbulence linked to the U.S. subprime mortgage crisis and high oil prices, reaching 5 percent growth, as many expect, means having luck on our side,'' said Lee, adding that the recent Samsung scandal is a critical variable that can dog the growth potential even more.
With the mega conglomerate being engulfed in a massive slush fund and bribery scandal for the past weeks, economic experts have expressed concerns that the most representative Korean company's sketchiness will deal a blow to other local corporations doing business overseas.
The FKI executive added that the lobby group will cooperate with the new incoming administration next year to build a more symbiotic relationship.
``The government will work to provide better business conditions, and in return, companies should work harder to create more jobs and give back to society,'' he said.