Government should change misguided policies
The Moon Jae-in administration has announced "major economic achievements" it has attained over the past two years. Out of the 39-page report, 37 pages are filled with self-flattering figures and comments.
For example, the report cited the nation's exports that surpassed $600 billion last year as a major accomplishment. The number, of course, is not wrong. However, the 2018 performance is so much out of touch with the present situation that no one can be complacent about it.
Outbound shipmentshave fallen for five consecutive months since December as declining demand for semiconductors has pulled down overall exports. To listen to the government economists, however, one might as well think overseas shipments remain robust.
It also said that Korea's economic growth rate is satisfactory compared to major advanced economies. However, the economy contracted 0.3 percent in the first quarter of this year from the previous one. This was the worst performance since the fourth quarter of 2008 when the global financial crisis hit the country.
Korea may be the only industrialized country that posted a contraction during the period while most other countries, including advanced economies, recorded growth. The government should stop misleading the public.
Few can deny the Korean economy has generated various problems since Moon took office in May 2017. Private consumption and business investment have slid backward, and the creation of jobs ― the government's No. 1 priority ― has all but failed despite its all-out efforts.
Efforts to narrow the income gap have also ended up as the worst redistribution fiasco possible. It is unsure whether the government is unable or unwilling to grasp this reality, but policymakers cannot revive the slumping economy unless they change their awareness about the grim reality.
The government should stop publicizing deceptive economic figures and boldly change existing policies, which have messed up the economy. Above all, it ought to reflect on why private experts are calling for a change in its income-led growth policy. Only when it pushes for deregulation and restructuring based on painful self-reflection, can Korean Inc. see itsvitality restored.
Even the Organization for Economic Cooperation and Development recently said Korea needs structural reform if it is to attain a second Miracle on the Han River. Does the Moon administration need any more pressure?
The Moon Jae-in administration has announced "major economic achievements" it has attained over the past two years. Out of the 39-page report, 37 pages are filled with self-flattering figures and comments.
For example, the report cited the nation's exports that surpassed $600 billion last year as a major accomplishment. The number, of course, is not wrong. However, the 2018 performance is so much out of touch with the present situation that no one can be complacent about it.
Outbound shipmentshave fallen for five consecutive months since December as declining demand for semiconductors has pulled down overall exports. To listen to the government economists, however, one might as well think overseas shipments remain robust.
It also said that Korea's economic growth rate is satisfactory compared to major advanced economies. However, the economy contracted 0.3 percent in the first quarter of this year from the previous one. This was the worst performance since the fourth quarter of 2008 when the global financial crisis hit the country.
Korea may be the only industrialized country that posted a contraction during the period while most other countries, including advanced economies, recorded growth. The government should stop misleading the public.
Few can deny the Korean economy has generated various problems since Moon took office in May 2017. Private consumption and business investment have slid backward, and the creation of jobs ― the government's No. 1 priority ― has all but failed despite its all-out efforts.
Efforts to narrow the income gap have also ended up as the worst redistribution fiasco possible. It is unsure whether the government is unable or unwilling to grasp this reality, but policymakers cannot revive the slumping economy unless they change their awareness about the grim reality.
The government should stop publicizing deceptive economic figures and boldly change existing policies, which have messed up the economy. Above all, it ought to reflect on why private experts are calling for a change in its income-led growth policy. Only when it pushes for deregulation and restructuring based on painful self-reflection, can Korean Inc. see itsvitality restored.
Even the Organization for Economic Cooperation and Development recently said Korea needs structural reform if it is to attain a second Miracle on the Han River. Does the Moon administration need any more pressure?
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