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VOA慢速:专家担忧韩国经济 2019.01.04

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Economic experts are concerned about South Korea’s .

The Hyundai Research Institute recently suggested in a that the economy “reached its peak in May 2017.”

The finding comes at a difficult time for South Korean President Moon Jae-in, whose public approval ratings have been falling.

An opinion study by Gallup Korea shows Moon’s approval rating at 45 percent, the lowest of his presidency. Also, a majority of businesses do not have a good opinion of him.

The Hyundai Research Institute predicts that the South Korean economy will grow at a rate of 2.5 percent next year. That is lower than the Bank of Korea’s prediction of 2.8 to 2.9 percent over the next two years.

Kim So Young is an economics professor at Seoul National University. He told VOA that the economy is slowing down, but at present, “it’s not at its worst.”

Chung Min is a research fellow with the Hyundai Research Institute. He predicts the economy will reach its lowest point during the second half of 2019.

“The economy is faced with downward risks, such as deepening trade disputes,” he said.

Economists are also concerned about other issues, such as rising household debt, Kim So Young said.

Taeyoon Sung is a professor in the School of Economics at Yonsei University. He said the Korean economy has lost competitiveness in the international marketplace.

Sung said that the higher cost of wages for workers, including an increase in the minimum wage, have hurt businesses.

Developing an economic plan

On Monday, the South Korean president called for measures to increase economic growth.

At a meeting with government ministers, Moon called for policies that add “innovation in regulation” and support for investment. He also called for lifting “regional economies and balanced development.”

Moon noted that it is difficult to “change an economy in a five-year term…” In South Korea, the president is limited to a single term of five years. He added that “changing the economic policy direction” takes time and requires patience.

The Hyundai Research Institute’s Chung Min said that rules do need to be changed to support investment in the economy. He called for more spending on what is called social overhead capital, known as SOC. These are things that society considers important, like libraries, public parks and community projects, which are not directly linked to industry.

Chung said an increase in SOC projects could ease a slowdown in the building industry “leading to a more active economy.”

The Hyundai Research Institute has called for economic changes, including a cut in interest rates. It also suggested that the budget permit additional spending in the first half of 2019.

Kim So Young agreed that changes to current economic policies were wise because South Korea cannot control issues outside the country, such as trade disputes.

I’m Mario Ritter Jr.


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