Depression Trauma Haunts Society
By Yoon Ja-young
Staff Reporter
Depression trauma will haunt society this year, with negative indicators adding to concern that the global economy could be in its worst shape since the Great Depression.
Hyundai Research Institute came up with the pessimistic outlook for socioeconomic trends this year.
It estimated that economic bipolarization between the rich and the working class would increase.
The working class is already seeing job market conditions worsen, the economic think tank said, adding the market would enter an ice age.
On top of faltering job creation, businesses are speeding up restructuring. The number of jobless, idle young and people permanently engaged in part time jobs is increasing and more highly educated women will be staying home, the institute said. The number of full-time housewives reached 6.8 million as of November, accounting for nearly half of the total economically inactive population.
The think tank said people will be forced to retire at a younger age and unemployment would be especially serious among the aged.
Without any realistic hope, people will turn to gambling, it predicted. Lotto sales grew 7 percent in November from the previous year, and the Korea Racing Authority is expected to see annual income grow by 13 percent. Gangwon Land saw a record high net income in the third quarter, with the sales growth of 14 percent.
It estimated that crime would increase, and more families will split up due to economic troubles. The estimation is backed up by the figures. The number of divorce cases filed at Daegu District Court from January to October last year totaled 8,506, up 7.3 percent from the previous year. Household debt averaged 40.6 million won, the highest ever, and real income dropped by 2.9 percent.
The institute said the troubled economy would change consumption, as seen during the Asian financial crisis. In 1998, for example, consumption of relatively expensive beef dropped by 16.8 percent, while pork consumption rose by 4.1 percent. Beer consumption decreased 14.3 percent, while soju jumped 9.2 percent.
It estimated the economy would record minus growth in the first quarter this year.