This report is a summary of the main issues facing the Korean economy in the Third National Economic Council.
The General Execution Plan detailed by the IMF Program (Ministry of Finance and Economy) is in concord with the policy directions of the Korean government. Therefore, the government needs to make an effort and establish concrete execution plans, recover the international community’s trust by moving forward with the restructuring process and implement the active restructuring of our people. For this, the macro policy should focus on alleviating the pressure for KRW devaluation, maintaining a devaluation basis to ease the burden created by the currency policy and appropriate costs for restructuring in the financial sector. The plan for reformation outlines measures such as the stabilization of liquidity, the reduction of general administration costs, the liquidation of insolvent bonds, the establishment of integrated financial supervision, improvements to the trade systems, the liberalization of the stock and bond markets and the reinforcement of the functions of the employment insurance systems.
The recent trend reported by the Ministry of Commerce and Industry shows that the fund shortage problem has not been solved completely. This is due to the mortgage shortage that resulted from the avoidance to extend the repayment period for new and mature loans and the increase in exchange rates for companies with foreign currency loans. The situation for the trade companies has worsened due to the discontinuance of purchasing export bills and inactive mortgage loans; furthermore, the losses attributed to currency conversion for the companies increased sharply. The supplementary measures include: an increase in corporate guarantee insurance; special cases support for bankrupt export companies which are unable to receive institutional supports; promotion of international trustworthiness to alleviate rejections in order to take over the repayment guarantee; amendments to the institutional and legal systems to solve the fund shortage problem in small and medium enterprises (SME); reduction of costs for management improvement; and restraining labor cost increase.
The measures provided by the Bureau of Public Information are: unification of people’s opinion toward the recovery of the domestic economy; promotion of rational consumption; deployment of national campaigns domestically; recovery of international trust in the global setting; strengthening of promotions against America; arrangement of special talks with international media; and strengthening of promotions for heads of overseas diplomatic offices and resident officers.
주요현안보고(Major issues report)
[서울]:재정경제원; 통상산업부; 공보처; 한국은행
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Economy < Economic Administration|
|Holding||재정경제원; 통상산업부; 공보처; 한국은행; 한국개발연구원 국제정책대학원|