The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to President
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to President
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
  • Login
  • Register
  • Login
  • Register
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
  • 1

    Kim Da-mi, Jeon So-nee team up for coming-of-age film 'Soulmate'

  • 3

    Park Hyung-sik to play crown prince in tvN series 'Our Blooming Youth'

  • 5

    SM to introduce multi-production system to increase business capabilities

  • 7

    Too many emergency text alerts? Gov't to halt daily COVID-19 notifications

  • 9

    First lady expands presence in domestic politics

  • 11

    'Ant-Man 3' promises bigger, better action with same family dynamic: cast

  • 13

    Seoul to discuss reforming free transportation benefits for seniors

  • 15

    FSC OKs Apple Pay to be available in Korea

  • 17

    Yoon's office to press charges over report on fortune teller

  • 19

    Britain's trade with N. Korea more than doubles last year: report

  • 2

    Teens feel peer pressure to buy luxury goods endorsed by K-pop stars

  • 4

    Itaewon tragedy's bereaved families harassed by far-right protesters

  • 6

    Discussions on raising age for free subway rides gain momentum

  • 8

    Plan to construct new memorial center for ex-president faces backlash

  • 10

    Ex-justice minister gets 2-year prison term for academic irregularities surrounding family

  • 12

    Apple Pay can be launched in Korea: financial regulator

  • 14

    Able C&C sale attracts dozens of potential buyers

  • 16

    Naver to roll out conversational AI service

  • 18

    Naver 2022 net profit down 96% on one-off factor

  • 20

    SEMICON Korea defies chip industry downturn

Close scrollclosebutton

Close for 24 hours

Open
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
Sun, February 5, 2023 | 09:42
Economy
Economy losing steam on falling investment
Posted : 2018-10-02 16:14
Updated : 2018-10-02 17:32
Print PreviewPrint Preview
Font Size UpFont Size Up
Font Size DownFont Size Down
  • facebook
  • twitter
  • kakaolink
  • whatsapp
  • reddit
  • mailto
  • link
Analysts urge President Moon to readjust economic policies

By Park Hyong-ki

The Korean economy is showing clear signs of a further slowdown as companies continue to reduce investment amid low consumer confidence beset possibly by state policy misguidance.

According to Statistics Korea, Tuesday, the country's facility investment dropped 1.4 percent in August from the previous month. It decreased 0.3 percent in July.

Investment in facilities has been falling for six straight months since March, the longest decline in 20 years, the statistics office noted.

Industrial output advanced 1.4 percent on increased production of vehicles and plastics. But the chip industry's investment slowdown weighed down the key index measuring corporate acquisitions of equipment for plant operations and logistical services.

This index is expected to get worse, given semiconductors have been the main growth driver, accounting for more than 20 percent of exports.

Also, the escalating trade conflict between the United States and China is painting a gloomy picture for the future of Asia's fourth-largest economy. As the U.S. upped the tariff ante, the OECD and the Asian Development Bank have revised down Korea's growth forecast.

Also, a survey by the Korea Federation of SMEs showed 50 percent of 300 small- and medium-sized enterprises surveyed between Sept. 14 and 20 said they do not have any investment plans for the fourth quarter of the year. The main reason was weak domestic demand and an increased payroll burden from wage hikes.

Only 15.7 percent responded they would invest, while the rest said they had made no plans yet.

Analysts say the government needs to readjust its policies and realign its priorities for the economy from ground zero by putting less weight on wealth redistribution and more on innovation and regulatory reform.

"Why would companies invest under the pro-labor policy without any consideration for growth in the private sector? The three wheels of innovation, regulatory reforms and labor should be turning at the same time," said Yun Chang-hyun, an economist at the University of Seoul.

Instead, the market is witnessing three different organizations ― Cheong Wa Dae, the Ministry of Economy and Finance and the Fair Trade Commission (FTC) ― bringing out their own "policy colors" separately, he added.

The finance ministry is focused on innovation, the antitrust agency is seeking to further toughen rules on chaebol dealings with their subsidiaries and subcontractors, and the presidential office is pushing forward with income-led growth.

"There is a lack of multiagency coordination to rebuild confidence in the economy," Yun said, noting this comes as a surprise given the three who are running those policies from their respective offices used to know each other when they were in academia.

Finance Minister Kim Dong-yeon was the president of Ajou University; Jang Ha-sung, presidential chief of staff for policy, was a Korea University business professor; and FTC Chairman Kim Sang-jo was an economics professor at Hansung University.

Kim Doo-un, an economist at KB Securities, said the economy has reached its limit with the existing market structure.

He agreed that putting more focus on driving private sector innovation would alter the industrial landscape as Korea once did following the financial crises of the late 1990s and 2008.

"The market has come to the point where it is unable to advance with its existing structure. The policies have to be revised to improve confidence to help make people and businesses think they can lead change," Kim said.

The central bank may cut its growth projection when it holds a monetary policy meeting this month amid the continued onslaught of weak data, he added.


Emailhyongki@koreatimes.co.kr Article ListMore articles by this reporter
 
Top 10 Stories
1Teens feel peer pressure to buy luxury goods endorsed by K-pop stars Teens feel peer pressure to buy luxury goods endorsed by K-pop stars
2Itaewon tragedy's bereaved families harassed by far-right protesters Itaewon tragedy's bereaved families harassed by far-right protesters
3Discussions on raising age for free subway rides gain momentum Discussions on raising age for free subway rides gain momentum
4Too many emergency text alerts? Gov't to halt daily COVID-19 notifications Too many emergency text alerts? Gov't to halt daily COVID-19 notifications
5Plan to construct new memorial center for ex-president faces backlash Plan to construct new memorial center for ex-president faces backlash
6First lady expands presence in domestic politics First lady expands presence in domestic politics
7Able C&C sale attracts dozens of potential buyers Able C&C sale attracts dozens of potential buyers
8FSC OKs Apple Pay to be available in Korea FSC OKs Apple Pay to be available in Korea
9Naver to roll out conversational AI service Naver to roll out conversational AI service
10SEMICON Korea defies chip industry downturn SEMICON Korea defies chip industry downturn
Top 5 Entertainment News
1Kim Da-mi, Jeon So-nee team up for coming-of-age film 'Soulmate' Kim Da-mi, Jeon So-nee team up for coming-of-age film 'Soulmate'
2Park Hyung-sik to play crown prince in tvN series 'Our Blooming Youth' Park Hyung-sik to play crown prince in tvN series 'Our Blooming Youth'
3'Ant-Man 3' promises bigger, better action with same family dynamic: cast 'Ant-Man 3' promises bigger, better action with same family dynamic: cast
4[INTERVIEW] Disney+ 'Big Bet' director on portraying greed and desire INTERVIEWDisney+ 'Big Bet' director on portraying greed and desire
5TXT, Le Sserafim top Oricon album and singles chart TXT, Le Sserafim top Oricon album and singles chart
DARKROOM
  • Nepal plane crash

    Nepal plane crash

  • Brazil capital uprising

    Brazil capital uprising

  • Happy New Year 2023

    Happy New Year 2023

  • World Cup 2022 Final - Argentina vs France

    World Cup 2022 Final - Argentina vs France

  • World Cup 2022 France vs Morocco

    World Cup 2022 France vs Morocco

CEO & Publisher : Oh Young-jin
Digital News Email : webmaster@koreatimes.co.kr
Tel : 02-724-2114
Online newspaper registration No : 서울,아52844
Date of registration : 2020.02.05
Masthead : The Korea Times
Copyright © koreatimes.co.kr. All rights reserved.
  • About Us
  • Introduction
  • History
  • Contact Us
  • Products & Services
  • Subscribe
  • E-paper
  • RSS Service
  • Content Sales
  • Site Map
  • Policy
  • Code of Ethics
  • Ombudsman
  • Privacy Statement
  • Terms of Service
  • Copyright Policy
  • Family Site
  • Hankook Ilbo
  • Dongwha Group