Lee believes Korean economy won't remain in low growth for long

President Lee Myung-bak said Monday he believes Korea's economy will break away from low growth before long, calling for businesses to make bold investments so that they can make a big leap forward when the economy turns around.

"Some say we have entered an age of low growth, but I believe our economy won't remain in low growth for long," Lee said in a speech at the opening ceremony for this year's state-organized regional development exhibition held in the southeastern city of Changwon.

Last week, the International Monetary Fund cut its 2012 growth estimate for South Korea to 3 percent, citing the heightened eurozone crisis as a major risk factor. That's down from the 3.5 percent growth that the lending agency predicted in April.

The government currently expects the economy to grow 3.3 percent, but many observers say that the outlook is too optimistic given the latest economic conditions at home and abroad. Sluggish exports are cited as a main drag on the Korean economy.

"Though everybody says things are difficult, I firmly believe South Korea's economy will recover soon, growth will become higher and exports will be expanded," Lee said. "I believe businesses, which try to make bold investments and nurture good talents at a time like this, will make a big takeoff when the economy recovers."

Lee also said an "excessive sense of crisis" rather causes the economy to shrink.

Fundamentals of the South Korean economy have been getting stronger since the 2008 financial turmoil, Lee said, adding that the government will use the current crisis as an opportunity to strengthen its fundamentals while maintaining fiscal health.

Gross regional domestic product has been on the rise as specialty industries of each region have taken a firmer root, Lee said, pledging that the central government will provide "bottom-up" support so that regional economies will take the lead in planning for their development. (Yonhap)