This study aims to serve as a reference to the formulation of the seventh Five-Year Socio-Economic Development Plan by assessing the sixth Five-Year Socio-Economic Development Plan, which was held previously.
Thanks to an average annual growth of 10%, the sixth Five-Year Socio-Economic Development Plan helped Korea reach an income of USD $6,300 per person, reach full employment and achieve growth based on domestic demand rather than export. Consumer prices rose sharply, but wholesale prices centered on industrial products remained at an annual average of three percent and paid foreign debts thanks to a consistent surplus until they turned towards the red in the 1990s. In regards to the economic policy, the sixth plan pursued an increase in housing supplies, an expansion of the social security system, the security of laborers’ three primary rights, a reform of the specific industry support system, the liberalization of private investment, the enhancement of industrial competitiveness through control over concentrated economic power and the promotion of economic openness.
Over the next five years, Korea is expected to undergo rapid changes in its industrial structure and lifestyle patterns, advancements in the economic system and the expansion of exchanges between the two Koreas, representing an additional step towards unification. Externally, Korea will be able to pursue economic profits thanks to the decline in ideological tensions and the cut in armaments, and it will enhance its national stature in northeast Asia’s economy by sharpening its competitiveness with global businesses and meeting the requirements to join OECD.
In this respect, the major policy and tasks of the seventh Five-Year Socio-Economic Development Plan should be to enhance industrial competitiveness and to respond to changes in the industrial structure by reforming the human resources production system, developing industrial technology, promoting informatization, expanding the social overhead facilities and enhancing corporate competitiveness. Also, there is a need for the enhancement of social equality and balanced development through the structural improvement of rural areas, finding solutions to housing problems faced by low-income families, stabilizing housing prices and the qualitative expansion of the social security system. In addition, economic development should be promoted through the expansion of cooperation and exchange between the two Korea and the establishment of a basis for unification, a push for the OECD membership and active promotion of financial liberalization.
제7차 경제사회발전5개년계획의 기본골격(Basic ideas for the formulation of the seventh five-year socio-economic development plan)
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Economy < Economic Administration
Government and Law < Public Administration
|Holding||경제기획원; 한국개발연구원 국제정책대학원|