수출•투자 총력•••정부는 2.5% 경제성장률을 도달할 수 있나
With South Korea cutting its growth forecast for this year,... policymakers are scrambling to find ways to turn the economy around.
They're using a wide range of tools at their disposal, as our Kim Da-mi explains.
Asia's fourth-largest economy was by no means immune from global economic uncertainties.
Sluggish global growth and a protracted U.S.-China trade war cast a dark cloud over the country's exports,... with South Korea's bread-and-butter semiconductor industry being one of the hardest-hit.
To cope with falling exports, the government will provide state financing measures... worth around six-point-four billion US dollars in the second half of this year.
Experts note however,... that of those measures,... the roughly 6 billion dollars earmarked for the semiconductor, bio-health and cosmetics industries... will provide some relief, albeit on a temporary basis.
"South Korea's exports depend on global economic recovery and Korea increasing its export competitiveness. The state financing measures will relieve the burden on local firms partially and temporarily, but the businesses themselves need to formulate their own approach to become more competitive."
In addition, the government aims to encourage active capital investment by local firms,... by providing tax breaks and other incentives.
But, many experts are pessimistic about their efficacy,... saying that these plans are not exactly new.
"For the last 10 to 15 years or so, investment seems to follow demand. We've tried a lot of incentives and interest rate is almost the lowest rate in ROK's history, but investment still hasn't picked up. I'm sure they'll be helpful to some extent, but given on our past experience, none of them are enough to overcome the low demand we're seeing."
Despite the government slashing South Korea's growth forecast to 2-point-5 percent for this year,... the country might still fall short of its new growth target... even with the lower bar.
"Partially it's government's job to cheerlead. That is, if they announce a number that is too low, then it will further depress the economy. So they want to estimate on the realistic side, but on the higher end of the realistic side."
Experts say the government should zero in on boosting consumption... to remedy Korea's ailing economy.
Given the unpredictable nature of external conditions,... South Korea should focus on what it can control... by encouraging consumption which could have a knock-on effect of stimulating investment as well.
The government is set to employ wide range of policy tools at its disposal,... including tax exemptions on facilities investment and private consumption.
KIM Da-mi, Arirang News.
