KCCI: S. Korea economy mired in tepid growth, ‘new sandwich crisis,’ frame of confrontation

January 17, 2014 Leave a comment

KCCI: S. Korea economy mired in tepid growth, ‘new sandwich crisis,’ frame of confrontation

Kim Eun-pyo

2014.01.16 17:47:34

“This year will be a watershed that will determine the fate of the South Korean economy, yet the society’s members are stuck in the frame of confrontation.”
This is the key message of the report titled “three hurdles and five tasks facing Korea’s economy,” a publication issued by the Korea Chamber of Commerce and Industry (KCCI)’s economic research division Thursday as the first achievement of its new chairman Park Yon-man’s ambitious project. The report picked the trap of anemic growth, ‘new sandwich crisis’ and confrontation among different economic players as the Korean economy’s three hindrances that must be overcome. This publication incorporates advices obtained by chairman Park from the world’s renowned gurus at international forums and opinions from corporate leaders after taking office.
However, first, Korea’s potential growth is rapidly plunging. The OECD estimated the country’s potential growth, which fell to 3.6 percent in the 2010s, would retreat further to 2.4 percent four years later and to one percent 17 years later, lagging behind the US, Europe and Japan.
In addition, management in the domestic manufacturing sector is seeing surging cost and regulations, as the scope of ordinary wage has expanded and new regulation requires companies to register chemical substances.
The KCCI proposed five ways to address the three obstacles: upgrading the economic and social paradigm; solidifying corporations’ fundamental competitiveness; fostering the vulnerable sectors; taking a pre-emptive response against future risks and opportunities, and; building partnerships among social members.

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