Is the Korean Economy 'Sleepwalking'?

An editorial in the financial newspaper said, “Regrettably, President Roh Moo-hyun's administration has lacked both the vision and political courage to pursue vigorous reforms. However, the inauguration of Mr. Roh's successor and parliamentary elections next year offer an opportunity for a fresh start.”

The editorial said, “Once held up as a model of precocious development, which rapidly transformed itself from an agricultural into an industrialized society, east Asia's third-largest economy is sinking into premature middle age.”

To back up its critical view, the FT pointed to the nation’s average economic growth of 4.2 percent over the past four years, "far below its potential." The newspaper also said that Korea’s xenophobia discourages foreign investment while domestic companies are moving their plants abroad as fast as possible.

“This faltering performance is all the more surprising because Korea still possesses enviable assets. It has a well-educated population, modern infrastructure, a high level of Internet penetration and an industrious, if militant, workforce,” the editorial said.

The article concluded with an optimistic note, saying, “History suggests that, with the right political leadership, Korea is quite capable of” transforming itself.

Unlike the FT, Seoul National University economics professor Lee Seung-hoon is pessimistic about Korea's next president. In a forum on national development, he criticized the presidential hopefuls for making populist campaign pledges and failing to take national development seriously.

Prof. Lee called their campaign promises a tactic to appeal to a certain social class in a certain region. He cited a ceiling on prices of new apartments and the disclosure of private builders’ construction costs as the best examples.

(englishnews@chosun.com )