■Innovative growth 2018
Economic growth, new plan in need
In the ‘Dog years’ of 2018, the Korean economy is expected to have a good infrastructure to get away from `anti-corporate policy` in order to achieve a solid economic growth rate of 3%.

Although the Korean government expects the export-driven Korean economy to continue its robust growth along with the recovery of the global economy, a large number of economic experts are worried that the Korean economy will never recover this year due to the semiconductor market leaning, protectionism, youth unemployment and it is expected to be one year. In particular, it is pointed out that the anti-corporate policy to increase the burden of management such as corporate income tax increase and minimum wage increase.

The survey, conducted by the Digital Times on 13 economists in the martial arts year, predicts the Korean economy in 2018. As a result, eight of the surveyed Koreans forecast that Korea`s economic growth rate will be only 2 percent in the second half of this year. Except for one who did not give a specific figure, 66.7% of the civilian experts showed lower than the government`s 3% growth rate.

Korea Economic Research Institute (IBK) and Yun Chang-hyun, professor of business administration at Seoul City University, predicted Korea`s economic growth rate to be the lowest at 2.7 percent next year. The researcher of the Hyundai Economic Research Institute presented a higher rate of 2.8%, Lee Chang-sun, senior researcher of the LG Economic Research Institute, and the Economic Research Institute of the Hyundai Economic Research Institute of the Republic of Korea 2% in the second half. In addition, Yang Jun-mo, a professor of economics at Yonsei University, Kim Jae-jung, head of Daishin Securities Research Center, and Chief of NH Investment & Securities, predicted that the economy would grow at the same rate as the government.

Meanwhile, the government has announced a rosy outlook this year to achieve the same 3 percent growth rate as last year, but private economic experts say the Korean economy will be a difficult year this year. In particular, most economic experts responding to the survey strongly demanded that the anti-corporate policy, which lowers corporate investment incentives such as corporate tax hikes and minimum wage increases, should be resolved.

Professor Kim Ki-heung of Kyonggi University stated, "In order to revitalize domestic demand, the government should put a priority on policies that can increase income." "It will not be easy for general companies to achieve growth rate of 3.0% "He said. Professor Yoon, Chang-hyun, said, "The economic environment will be weakened by anti-corporate policies such as corporate income tax and R & D tax credits." " .

Many experts were worried about excessive market penetration of semiconductors. Professor Sung Tae Yoon, a professor of economics at Yonsei University, said, "If exports of semiconductors and petrochemicals deteriorate, this year`s economic growth rate could fall below 3.0 percent."

Besides, private sector experts are expected to focus on domestic and foreign variables such as sustainable growth and economic paradigm shift, low fertility and aging problems, youth unemployment that can hardly be resolved, and huge household debt exceeding 1,400 trillion won I advised them to respond flexibly. It also said that the world economy is shifting to protectionism and fiscal tightening, and that the North Korean nuclear crisis is becoming a constant, not a variable, in the Korean economy.

By Kwon Dae Gyung kwon213@


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