South Korean President Speech Focuses on the Economy
South Korean president Roh Moo-hyun in his annual address noted he would concentrate on reviving the economy in 2005. According to Choson Ilbo, the speech focused almost entirely on the economy. This is evidence of how serious a state the economy is in, and of Roh's determination to confront the country's economic woes.
The president's proposed solution is primarily two-fold. One element is rescue through investment expansion and a front-loaded budget. Roh said he would launch a fiscal stimulus package in the first half of the year and added he would urgently execute a comprehensive investment plan to draw ample private sector capital into public investment.
Fortunately, many firms have said they will increase investment from early this year, Roh said. If this happens, he believes that the economy can recover its vitality starting from the second half of the year. The government is planning to spend half its annual budget -- W100 trillion -- in the early part of the year. It also plans to bring the start of its W7 trillion comprehensive investment plan -- the Korean "New Deal" -- forward from the second half to the first. However, fiscal support for the economy has its limits, and observers worry that it could have negative side effects. Besides, there have been cases when firms did not carry out their investment plans.
Roh said resolving structural issues was more important than business recovery. He was referring to polarization between industries, between companies and between workers. The president said ignoring these issues would damage Korea's economic growth potential. His solution is a growth-plus-employment policy on which he offered no specifics.
The president's proposed solution is primarily two-fold. One element is rescue through investment expansion and a front-loaded budget. Roh said he would launch a fiscal stimulus package in the first half of the year and added he would urgently execute a comprehensive investment plan to draw ample private sector capital into public investment.
Fortunately, many firms have said they will increase investment from early this year, Roh said. If this happens, he believes that the economy can recover its vitality starting from the second half of the year. The government is planning to spend half its annual budget -- W100 trillion -- in the early part of the year. It also plans to bring the start of its W7 trillion comprehensive investment plan -- the Korean "New Deal" -- forward from the second half to the first. However, fiscal support for the economy has its limits, and observers worry that it could have negative side effects. Besides, there have been cases when firms did not carry out their investment plans.
Roh said resolving structural issues was more important than business recovery. He was referring to polarization between industries, between companies and between workers. The president said ignoring these issues would damage Korea's economic growth potential. His solution is a growth-plus-employment policy on which he offered no specifics.
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