Sandwich Theory Is Beneficial, Not Threatening: SERI Chief
By Jane Han
Staff Reporter
JEJU ISLAND _ Contrary to popular belief that the ``sandwich theory,'' which describes the country's position between Japan and China, is a threat to the economy, the head of a local think tank said Thursday that the phenomenon is exaggerated and may actually become beneficial.
``It's not Korea that gets hit from the China boom, but countries like Indonesia and other Southeast Asian countries as they got their attention stolen from potential global investors,'' Jung Ku-hyun, president of the Samsung Economic Research Institute (SERI), said during a speech at a summer CEO forum hosted by the Korea Chamber of Commerce & Industry.
He stressed that although China is speeding up in terms of technology, there's still a long way to go before it hones global competitiveness.
``Korea has reaped many benefits for the 15 years since it established diplomatic ties with China,'' Jung said, adding that unlike the up and coming China, Japan is a withering leaf.
He stressed that the Far East country is still ahead of Korea in many ways, but its economy has already matured.
``Japan's performance looks more impressive only because it went through such a long period of recession, but the big picture shows no dynamism,'' said the SERI chief, assuring that the local economy is doing much better than what meets the eye.
He said that the country's economy seems to be staggering not because of fundamental problems but due to short-term currency issues crippling local exporters.
In offsetting further sandwich theory concerns, Jung welcomed more free trade agreements (FTA) as those are crucial spring boards for the country to leap past neighboring competitors.
About 300 local CEOs attended the four-day forum and Commerce, Industry and Energy Minister Kim Young-joo, CJ Group and KCCI Chairman Sohn Kyung-sik and Korea University Chairman Han Sung-joo were among the participants.