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The losses incurred by two months of street protests amount to W2 trillion, a report claims (US$1=W1,033). According to the report titled ¡°Social Cost of Candlelight Vigils¡± released by the Korea Economic Research Institute on Tuesday, the macroeconomic costs resulting from social instability and decrease in investment are estimated at W1.352 trillion, and delays in public reforms cost W570.8 billion. KERI estimated the overall damage at up to W1.92 trillion, more than 0.2 percent of GDP.
The estimates were calculated based on the relation between mass demonstrations and investment in infrastructure over last 17 years between 1990 and 2006. A KERI spokesman said the estimates are based on damage caused over the last two months only. ¡°If the candlelight vigils continue for more than a year, the damage will mount to W7 trillion,¡± he said.
The institute also predicted that candlelight protests caused direct damages of W668.5 billion -- W35.6 billion in lost production due to strikes by the Korean Confederation of Trade Unions, W58.5 billion in public expenses such as mobilization of police, W574.4 billion in losses to third parties such as businesses near the site of demonstrations.
(englishnews@chosun.com )
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