Revive economy in South Korea.
The Korea Development Institute (KDI) predicted a 5% increase in the economy saying, "economic recovery is now turning up". KDI specializes in research and analysis oriented toward policy decisions that policy-makers face. One of the largest private institutes, Samsung Institute, also predicted a 4.8% increase.
Just one month ago, overseas institutes made negative predictions about the economy of South Korea, but they have changed their viewpoints positively. The National Statistical Office released statistics which show the propensity to consume has recovered since 6 months ago. It is very good news for South Koreans who expect economic recovery. Indexes of exports, consumer prices and family budget balances all take favorable turns, although slow.
The reality is not so rosy. The domestic market is still cold, and consumers are not more active than in the past. Corporate investment, which plays the role of economic development, is still inactive.
KDI stressed that the government should focus on the production of corporations, because the stagnant investment of companies holds off economic recovery in South Korea. Samsung Research Institute also indicated that it is difficult for the economy to recover without recovery of the domestic market.
The important things for economic recovery in South Korea are to activate corporate investment and to induce the strong propensity to consume. Some economic experts indicate that the industry's readiness to invest continues to be slow because the economic situation is uncertain in South Korea. Inconsistent and anti-market policies of the government are also barriers to investment. Especially, a policy of "attacking a certain corporation" is not desirable. There are some solutions to boost the economy and to create a favorable economic cycle, such as stabilizing the investment atmosphere and improving employment conditions as well as increasing consumption. The ruling party and the government should not interfere with the economic recovery in South Korea nor should they be a wet blanket on the small flame of economic recovery.
|
 / 입력시간: 2005. 10.15. 12:51
|
|
|
