ED No reason for euphoria

$30,000 income era brings greater challenge to Korea

It is certainly good news that the country's per capita gross national income (GNI) has exceeded the $30,000 mark. This amazing figure means South Korea has become the seventh country in the world to join the “30-50” club of economic powerhouses whose per capita income and population are over $30,000 and 50 million, respectively.

In a nutshell, the nation's ascendance to the coveted club reveals its brilliant economic success story. Korea has already emerged as a rags-to-riches model which many developing countries try to emulate. Rapidly rising from the ashes of the 1950-53 Korean War, the country achieved what was called the Miracle on the Han River in the 1970s and 80s.

The per capita GNI, a measure of the population's purchasing power, soared from $67 in 1953 to $11,432 in 1995 and to $21,695 in 2007. The Bank of Korea said Tuesday that the figure hit an all-time high of $31,349 last year, up 5.4 percent from the previous year. This record confirms that Korea's march toward economic affluence has not yet stopped.

The country also surprised the world in 2000 when it became a donor country after having been a major recipient of international aid for a half century. Korea boasts that it has realized outstanding economic development and created a functioning democracy at the same time in such a short period of time.

That is why Koreans deserve lavish praise for their toil and moil. They are still working the longest hours among their counterparts in OECD member states. In this sense, it is right to say Koreans' economic achievement couldn't have been possible without their hard work and devotion.

Now the problem is whether the nation can keep this growth trajectory down the road. This is still an open question. Despite the remarkable income data, the country is faced with prolonged economic doldrums. The growth outlook is getting bleaker with growing signs of the economy losing steam.

For this reason, all the economic players ― businesses, consumers and government ― cannot and should not feel complacent about the per capita income increase. Only a few, especially the rich, feel they are better off now than ever before. Most workers complain that their real income has decreased due to widening income inequality amid the continuing economic slump.

More worrisome is that the economy is expected to become weaker because exports, which had long propped up the nation's growth, fell considerably for the third straight month in February. Gloomy external factors such as a slowing global economy and the ongoing U.S.-China trade war are also weighing down on Korea.

Job creation is also suffering a setback after the unemployment rate rose to 3.8 percent, the highest since 2001. President Moon Jae-in's income-led growth policy has so far failed to generate more jobs and bring higher wages to workers.

Moon and his policymakers should make all-out efforts to speed up economic recovery by promoting deregulation, innovation and structural reform. They need to take bolder measures to enable the people to feel they are better off.