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Hyun Jung-taik, president of the Korea Development Institute, is skeptical about the realization of President-elect Lee Myung-bak’s pledge to revive the economy. He and a number of other economic experts have expressed doubt about the viability of the president-elect’s proposed programs, while economic indicators from major institutions forecast a low economic growth rate for the first half of the coming year.

During a business forum held on December 27, Hyun noted that it would not be possible for the nation’s economic growth rate to improve in five or six months as Lee has asserted, adding, “As the economy will continue to see a low growth rate until the first half of next year, people who have high expectations (for Lee’s pledges to revive the economy) will be sorely disappointed.”

Hyun also predicted that the nation’s economic growth rate would fall short of the current forecast of 5.0 percent. The president-elect has pledged to achieve 7 percent annual economic growth during his tenure.

“In October, KDI said that the nation’s growth rate would reach 5.0 percent in 2008 but since then the situation has changed due to the U.S. subprime mortgage crisis. KDI will now have to lower its projections,” Hyun remarked.

Other notable institutions, including the Bank of Korea, the International Monetary Fund (IMF), the Organization for Economic Cooperation and Development (OECD) and Samsung Economic Research Institute, have also forecast a different outlook for the coming year. Hyun noted that latest figures of these institutions are lower than those announced previously by various institutions.

Hyun also emphasized that uneasiness about prices would continue for a while. “The monetary authority should maintain stable prices by implementing consistent monetary and financial policies ,” Hyun said.

A number of economic scholars participating in a forum hosted by the Korean Economic Association on December 26 also expressed skepticism about Lee’s economic pledges, saying that they lack feasibility and that they conflict with one another.

Lee Myung-bak, of the conservative Grand National Party, won election as South Korea’s next president on December 19 and will take office on February 25. His campaign was based on a platform of economic reform outlined in his “747” pledge, in which he promised to bring the country an annual economic growth rate of seven percent, increase per capita income to US$40,000 per year in 10 years and put South Korea on the list of the world’s top seven economies. South Korea is currently the world’s 13th largest economy.



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