Per Capita GDP to Reach $31,000 in 2012: Lee’s Transition Team
By Na Jeong-ju
Staff Reporter
Where will South Korea be in 2012 on the global stage if President-elect Lee Myung-bak attains his economic goals?
The country will be one of the top seven global economic powers with more than $40,000 in per capita income, if the Lee government succeeds in achieving an annual average growth of 7 percent over the next five years.
Many economists say the goals are unrealistic in view of anticipations of an economic slowdown in the United States and rising crude oil and other raw material prices. However, Lee's policymakers are looking to take the country's global competitiveness to a higher level by easing regulatory rules and cutting taxes for a more business-friendly environment.
In a recent policy proposal to Lee, the presidential transition team offered the blueprint for the country's economic future.
The team said gross domestic product (GDP), the total output of goods and services produced by a country, will reach $1.57 trillion at the end of 2012 from $974 billion in 2007. Per capita GDP will increase to $31,017 from $20,090.
Korea ranked 29th in terms of global competitiveness last year, according to a survey by the Switzerland-based International Institute for Management Development. The country will be able to become one of the top 10 most competitive nations in the world by the end of 2012 if it pursues corporate-friendly policies and attracts more direct investments from foreigners, the team said.
Foreign direct investment stood at $3.6 billion as of the end of 2006. The figure will rise to above $10 billion in 2012.
The team also expects Korea's tourism industry to record robust growth as Lee will initiate foreigner-friendly measures. Some 12 million foreign tourists will visit the country in 2012, a two-fold rise from 6 million in 2006, according to the team.
``The goals are attainable if Korea removes unnecessary regulations, eases corporate taxes and achieves flexible labor-management relations. Lee will pursue a small, but strong government,'' a team member said.
In a meeting with the chairmen of leading business groups late last month, Lee stressed he will make every effort to increase corporate investment, saying doing so is essential to reviving the economy and creating more jobs.
``More investments can create more profits and more jobs,'' Lee said. ``Just tell me what I have to do at any time to boost corporate investment. I will do everything that I can do to help you invest.''
Among the participants were Samsung Group Chairman Lee Kun-hee, Hyundai-Kia Automotive Group Chairman Chung Mong-koo, LG Group Chairman Koo Bon-moo and SK Group Chairman Chey Tae-won.
Giving more job opportunities to women is one of Lee's key policy goals.
Lee has pledged to create more day care centers nationwide and have the government pay for them. The percentage of women participating in economic activities will rise to 60 percent in 2012 from the current 50 percent, according to the transition team.