Moon seeks advice to boost economy
President Moon Jae-in holds a meeting with former senior economic officials at Cheong Wa Dae, Wednesday. The meeting was arranged to seek advice on how to boost the economy, the presidential office said. Participants included Jeon Yun-churl, former chief of the Board of Audit and Inspection, former Bank of Korea Governor Kim Choong-soo, former Fair Trade Commission chief Kang Chul-kyu and former BOK Governor Park Seung. Yonhap
By Kim Yoo-chul
President Moon Jae-in met with former senior economic officials to explore the best possible ways to revive the local economy amid growing worries over the South Korean economy losing steam, which has bred fear of a possible downturn.
Cheong Wa Dae said President Moon's Wednesday meeting with them was intended to collect views for identifying and addressing forthcoming opportunities, threats and challenges to the local economy.
Eight former senior government officials and economic experts including former Prime Minister Chung Un-chan and former Bank of Korea (BOK) Governors Park Seung and Kim Choong-soo, attended the luncheon at the presidential office.
“Key issues discussed at the luncheon included ways of applying additional policy measures amid growing controversy over the widening economic polarization, income gap and higher unemployment rate,” a Cheong Wa Dae official said, adding the meeting is in accordance with the President's “economic pitch” to hold meetings with small business owners, startups and foreign investors.
The South Korean economy, Asia's fourth-largest, is facing lots of challenges. Household debts are rising and the country's overall unemployment rate has increased despite the government's ambitious introduction of a policy to hike minimum wages.
Such worsening economic indices sparked concerns over a cloudy economic future, bringing the Moon administration to the point where government borrowing may be needed to prevent further economic backtracking.
The BOK recently lowered its growth outlook about the economy throughout this year to 2.6 percent, a slowdown from last year's 2.7 percent growth, due to the falling momentum of the country's crucial exports.
President Moon and his economic team are in discussions about the possible introduction of a supplementary budget to deal with the slowing economic growth, government officials said. Economists said the government may increase its spending by about 10.5 trillion won this year to achieve this year's economic growth forecast.
The International Monetary Fund earlier warned of headwinds buffeting the local economy and urged the government to deliver new spending.
President Moon hinted at adjusting his signature “income-driven” economic growth policy during a separate meeting with officials from domestic civic organizations at Cheong Wa Dae, Monday.