In a meeting with his senior policy advisers last week, President Moon Jae-in said economic policies pursued by his administration fitted into the concept of inclusive growth.If efforts are exerted with confidence, he said, inclusive growth, through which a people-oriented economy takes root and the benefits of growth are shared evenly, would be made possible.His remarks, which came with pledges to pay more heed to speeding up deregulation and structural reforms, invited criticism from oppositio

Viewpoints Aug. 2, 2018

A simultaneous downturn in economic indicators raises the possibility of the Korean economy weakening in the second half to the extent of making it hard to achieve the official 2018 growth target of 2.9 percent.Preliminary data released by the Bank of Korea last week showed Asia’s fourth-largest economy grew 0.7 percent on-quarter in the April-June period, decelerating from a 1 percent rise in the first quarter.Finance Minister Kim Dong-yeon, who doubles as deputy prime minister for econom

Economy July 30, 2018

A possible global currency war that might erupt amid escalating trade tensions between the world’s largest economies threatens to pose a complicated set of risks to the Korean economy.US President Donald Trump last week accused China and the European Union of “manipulating their currencies and interest rates lower.”Treasury Secretary Steven Mnuchin later put flesh on Trump’s accusation by saying Washington is closely monitoring whether China has manipulated its foreign ex

Economy July 25, 2018

The Moon Jae-in administration’s expansionary fiscal policy will probably prove unsustainable in a couple of years due to a possible decline in tax revenue that might stem partly from reduced corporate profits, economists say.On the back of a continuous rise in tax revenue, President Moon’s government has been increasing fiscal spending at a steep pace to expand welfare and employment programs. It is also under growing criticism for squandering taxpayer money to cope with the uninten

Economy July 23, 2018

President Moon Jae-in’s recent outreach to the business community seems to have so far fallen short of gaining full confidence and cooperation from corporate officials.The local corporate circle is cautiously watching whether he will follow through with his encouraging signals to shift to business-friendly policies despite objections from civic and labor groups as well as many ruling party lawmakers. In a move that was seen as heralding changes in his stance to keep a distance from the cou

Economy July 18, 2018

A growing level of debt owed by self-employed businesses is becoming a ticking time bomb that hangs over the Korean economy, experts say.A continuous increase in the minimum wage amid sluggish domestic demand is set to add to precipitating the pace of debt growth.According to data recently submitted by the Bank of Korea to a lawmaker, the outstanding debt held by self-employed businesses in the country amounted to 549.2 trillion won ($487 billion) last year, up 14.4 percent from the previous yea

Economy July 16, 2018

Korea’s manufacturing exporters need to set their sights on new business opportunities that would stem from an escalating trade war between the US and China, experts here say.Protracted trade friction between the world’s two biggest economies might also give them more room to prepare for the fallout from China’s ambitious plan to become a global power in major advanced industries by 2025.Behind President Donald Trump’s toughening stance against Beijing seems to be Washing

Economy July 11, 2018

Repeated discords among policymakers have amplified concerns over the direction of the Moon Jae-in administration’s economic policies that are criticized for being detached from the reality.Adding to the confusion is half-baked proposals from a number of policy advisory panels swayed by progressive civic group members and scholars. Finance Minister Kim Dong-yeon, who doubles as deputy prime minister for economic affairs, last week rebuffed an earlier proposal made by a presidential panel t

Economy July 9, 2018

President Moon Jae-in’s administration is running short of time to carry out regulatory reforms that are urgently needed to bolster the sluggish economy, experts say.Over the past year, it has pushed for innovation-driven growth in tandem with income-led growth in the hope of enabling the Korean economy to ride on the wave of new industrial technologies and get a boost from increased consumption spending.But Moon and his economic aides now face mounting criticism that they have done little

Economy July 4, 2018

The weakening of the won in recent weeks carries both benefits and risks for the Korean economy that is being held back by a simultaneous downturn in investment, consumption and exports. Policymakers therefore face a thorny task to take proper steps in response to the weakening won that is set to have contradictory effects on the economy.The value of the Korean currency against the dollar fell to an eight-month low of 1,124.2 won per dollar in the Seoul foreign exchange market on June 28 before

Economy July 2, 2018

Warnings have been raised against the increasing reliance of President Moon Jae-in’s government on fiscal spending to carry on what critics say is a mixture of misguided policies.Economists worry that the Moon administration’s eagerness to increase fiscal expenditure as a panacea for curing economic problems, which have been partly exacerbated by its policies, will hurt the country’s long-term fiscal soundness.Since taking office in May last year, Moon has pushed for income-led

Economy June 27, 2018

An emerging trade war between the US and China is weighing on Korea’s exports, which have been losing traction this year.A 25 percent US tariff on $34 billion worth of Chinese goods is set to take effect from July 6, with further duties on another $16 billion in imports from China under consideration. China has pledged to slap tariffs of the “same scale and intensity” on US imports.President Donald Trump has threatened that Beijing’s countermoves would lead the US to impo

Economy June 25, 2018

Concerns are growing over the possible hollowing-out of Korea’s key manufacturing industries as local companies rush to move factories to countries with better conditions to detour anti-business policies at home and global trade friction.According to industrial sources, 97.1 percent of TV sets made by Korean electronics firms in 2017 were manufactured at overseas plants. The corresponding figures reached 93.2 percent for mobile phones, 86.9 percent for washing machines and 80.3 percent for

Economy June 20, 2018

Calls are growing for President Moon Jae-in’s administration to readjust its income-led growth policy, which experts say has been only worsening unemployment and low-income households’ livelihoods.According to the latest data from Statistics Korea, the country’s jobless rate stood at 4 percent last month, up from 3.6 percent in May last year, when Moon took office. The figure for young people aged 15-29 rose from 9.2 percent to 10.5 percent over the cited period.The overall and

Economy June 18, 2018

With the prospects for Korea’s exports in the coming years dimming, there is increased pressure to expand domestic demand, particularly by promoting service industries through drastic deregulation.A downturn in exports, which have shored up Asia’s fourth-largest economy in recent years amid sluggish domestic demand, could rattle it unless offset by an increase in local consumption and investment, experts say.According to recent data from the Bank of Korea, exports made a 1.8 percenta

Economy June 13, 2018