eseoulpost
DomesticEconomy
Global market improvements fuel upturn in S. Korea economy under President Moon
min  |  min
폰트키우기 폰트줄이기 프린트하기 메일보내기 신고하기
승인 2017.11.11  
트위터 페이스북 미투데이 요즘 네이버 구글 msn
   

SEJONG, Nov. 9 (Yonhap) -- When President Moon Jae-in took office after his victory in the unprecedented presidential by-election in May, he was confronted with tough challenges ranging from social upheaval caused by his predecessor to heightened regional diplomatic and military tensions.

One of the biggest issues confronting the chief executive was finding a way to tackle the protracted economic slowdown, as many experts fretted that Asia's fourth-largest economy was losing steam and entering a period of chronically low growth.

Economic data was also depressing for Moon, as the South Korean economy grew 0.6 percent in the April-June period from a quarter earlier, sharply cooling from the previous quarter's 1.1 percent gain.

The economy was, moreover, affected by a trade row with China. Starting in March, China implemented official and unofficial measures against imported goods from South Korea in apparent retaliation for Seoul's decision to deploy an advanced U.S. missile defense system called Terminal High Altitude Area Defense.

Additionally, most global investment banks and private think tanks issued reports that the South Korean economy would fail to meet a growth target of 3 percent for 2017.

President Moon swiftly pushed forward a supplementary budget plan in a bid to have state spending spearhead economic growth to bolster production and exports, which have been on a steady rise since November last year. The additional 11 trillion won, independent of the 400 trillion won (US$359.2 billion) regular budget for the fiscal year 2017, aimed to create new demand and jobs, vital for sustainable growth.

The new administration also designated a temporary holiday to create a 10-day long Chuseok, or autumn harvest, holiday in early October in a bid to encourage people to spend more.

Entering the third quarter, the world economy entered an upturn phase led by solid growth in the United States and Europe.

Exports -- one of South Korea's major economic pillars -- grew a solid 24 percent in the third quarter from a year earlier thanks to strong demand for locally made semiconductors and displays. In September alone, the country's outbound shipments soared a record 35 percent to $55.1 billion.

In the three month period, the country's gross domestic product (GDP) increased a good 1.4 percent from the previous quarter, the fastest gain since the second quarter of 2010, when the economy shot up 1.7 percent.

"Exports led the third-quarter performance," said Kim Joo-hoon, chief economist at the state-run Korea Development Institute. "In particular, stellar overseas sales of semiconductors were in the forefront."

   The financial market is also booming. South Korea's main bourse set a new record last month to close above the 2,500 mark for the first time since the market opened in 1983, led mostly by gains of technology companies amid eased geopolitical tensions over possible North Korean nuclear provocations.

The third quarter growth suggests that South Korea is almost certain to meet or surpass the government's growth target of 3 percent.

As a result of the good economic news, the BOK raised its growth outlook for the country's GDP to 3 percent for 2017, up 0.2 percentage point from the estimate the central bank released in July. The International Monetary Fund had also earlier adjusted South Korea's gross domestic product growth to 3 percent, up 0.3 percentage point from its April estimate, citing the general recovery in global trade.

Despite such optimistic signs, some critics claimed economic recovery going forward was not a sure thing and may not be sustained, as the rosy economic data is largely due to certain sectors.

"Bullish exports are caused by ballooning demand for chips, which also comes along with facility investment," said Kim, the KDI economist. "The gap between the semiconductor business and others is actually widening."

   To sustain the steady economic growth, the Moon Jae-in government crafted its "innovative growth" strategy, along with income-led growth and fairness. As a first step, the government announced a set of plans to foster innovative startups, through the creation of a 10 trillion-won fund in the coming three years and giving tax incentives to venture investors.

From the beginning, President Moon has put policy priority on "income-induced growth," or "consumption-led growth," which calls for increasing household income and spending by using various policy tools to fuel sustainable economic growth.

"If the job-centered economy and income-induced growth are demand-side policies, innovative growth would be the supply-side policy," Finance Minister Kim Dong-yeon said earlier. "A harmony of the two would enable the sustainable growth of South Korea's economy."

 

)

< 저작권자 © eseoulpost 무단전재 및 재배포금지 >
폰트키우기 폰트줄이기 프린트하기 메일보내기 신고하기
트위터 페이스북 미투데이 요즘 네이버 구글 msn 뒤로가기 위로가기
이 기사에 대한 댓글 이야기 (0)
자동등록방지용 코드를 입력하세요!   
확인
- 200자까지 쓰실 수 있습니다. (현재 0 byte / 최대 400byte)
- 욕설등 인신공격성 글은 삭제 합니다. [운영원칙]
이 기사에 대한 댓글 이야기 (0)
Most Read
1
Honduran Envoy joins 48th Anniversary Ceremony of Saemaul Ungong
2
Expo 2020 highlights its unique opportunities for global travel and MICE industry at ATM 2018
3
Mashreq Bank wins award at Mastercard MENA Leadership Forum in France
4
Book on Sheikh Zayed quotes released
5
S. Korea's top kids beverage earns halal certificate
6
Emirates scoops four awards at the World Travel Awards Middle East 2018
7
Manazel Real Estate announces co-development agreements with investments exceeding AED500 million
8
National Media Council, Facebook team up to combat proliferation of false news
9
S. Korea women's football coach eyes knockout berth at 2019 World Cup
10
Korea, Ukraine to step up cultural and people to people exchange programs
Photo News Green Biz
UAE environmentalists to travel to ends of the earth to inspire change
UAE environmentalists to travel to...
min
Mohammed bin Rashid launches Marmoom Desert Conservation Reserve
Mohammed bin Rashid launches Marmo...
min
Masdar unveils locally manufactured all-electric Eco-Bus
Masdar unveils locally manufacture...
min
Tabreed, Masdar sign agreement to operate Masdar City’s First District Cooling Plant
Tabreed, Masdar sign agreement to ...
min
World Future Energy Summit 2018 to map transition to a sustainable economy and lead ‘cleantech’ innovation
World Future Energy Summit 2018 to...
min
Photo News Sports
S. Korean named new leader of East Asian football body
S. Korean named new leader of East...
min
Nahyan bin Mubarak receives female people of determination who participated in Special Olympics Regional Games in Abu Dhabi
Nahyan bin Mubarak receives female...
min
PyeongChang 2018 chief organizer says 4 things led to successful Winter Olympic, Paralympic Games
PyeongChang 2018 chief organizer s...
min
PyeongChang Winter Paralympics end with celebration of breaking down barriers
PyeongChang Winter Paralympics end...
min
Opening day of Abu Dhabi’s Special Olympics IX MENA Games 2018 witnesses incredible sporting achievement
Opening day of Abu Dhabi’s Special...
min
Largest Winter Paralympics to close in PyeongChang
Largest Winter Paralympics to clos...
min
Olympics:9th Regional Games of Special Olympics opens in Abu Dhabi
Olympics:9th Regional Games of Spe...
min
World’s top rally drivers to compete in Abu Dhabi Desert Challenge
World’s top rally drivers to compe...
min
Photo News World
S. Korean named new leader of East Asian football body
S. Korean named new leader of East...
min
Nahyan bin Mubarak receives female people of determination who participated in Special Olympics Regional Games in Abu Dhabi
Nahyan bin Mubarak receives female...
min
PyeongChang 2018 chief organizer says 4 things led to successful Winter Olympic, Paralympic Games
PyeongChang 2018 chief organizer s...
min
PyeongChang Winter Paralympics end with celebration of breaking down barriers
PyeongChang Winter Paralympics end...
min
Opening day of Abu Dhabi’s Special Olympics IX MENA Games 2018 witnesses incredible sporting achievement
Opening day of Abu Dhabi’s Special...
min
Largest Winter Paralympics to close in PyeongChang
Largest Winter Paralympics to clos...
min
Olympics:9th Regional Games of Special Olympics opens in Abu Dhabi
Olympics:9th Regional Games of Spe...
min
World’s top rally drivers to compete in Abu Dhabi Desert Challenge
World’s top rally drivers to compe...
min
Photo News Opinion
Customs officials raid Korean Air, owner family's house over alleged tax evasion
Customs officials raid Korean Air,...
min
Military hopes for summit breakthrough in easing border tension
Military hopes for summit breakthr...
min
Police admit to having evidence linking ruling party lawmaker to Internet comment rigger
Police admit to having evidence li...
min
GM Korea, union in last-minute talks as deadline nears
GM Korea, union in last-minute tal...
min
Top GM official remains optimistic about wage negotiations
Top GM official remains optimistic...
min
Ruling party expels two members suspected of online comment rigging
Ruling party expels two members su...
min
FSS chief offers to resign after election watchdog finds past political donation unlawful
FSS chief offers to resign after e...
min
Civic groups vow to erect statue for forced labor victims near Japanese consulate
Civic groups vow to erect statue f...
min
Newspaper AboutNews ReportAdvertiseComplaintsPrivacy PolicyJuvenile protectionRejection of E-mail Collection
Gangnam-gu, Teheran 52 street in Tehran Bldg, 616(Yeoksam-dong)  |  Main Phone: 02) 563-0604  |  Fax: 02) 538-5665
Chairman : jeong-woo Lee  |  Advisor : byung-il Min  |  Publisher: jae-mo Kah  |  Editors: il-hong Kim
Registration Number 1928 Seoul ah  |  eseoulpost.com / eseoulpost.net / Global Korea.,Ltd
Copyright © 2011 eseoulpost. All rights reserved. mail to jaemokah@daum.com , kih10kr@empas.com/ www.globalkorea.info
arabafrica.net / UAE Interract / Emirtes News Agency(WAM)/ http://wam.org.ae / www.uaeinteract.com