ADB lowers Korean economic growth rate to 3.9% for this year

The Asia Development Bank (ADB) adjusted the Korean economy growth rate for this year downward to 3.9 percent from 6.0 percent, as expected.

ADB revealed March 19 in a report concerning the Asian economy recovery that Korea will experience an economic downward spiral under the influence of export decreases and the world economy's slowing down, reaching far below the 9.2 percent increase achieved last year.

This figure is much lower than the government goal of 5.0 to 6.0 percent, or the 6.5 percent figure set by the International Monetary Fund and World Bank. Last September ADB predicted this year's growth rate as 6.0 percent.

ADB accounted for the adjustment citing business restructuring difficulties, risks for financial systems, and a possible electrical and electronic products slump.

They also point out "restructuring for major conglomerates such as the Hyundai Group and Daewoo Group is not enough. Labor unions and the unemployed also hindered restructuring."