Economic recovery expected in latter half next year

Government economic researchers predicted that the Korean economy would record a 3 - 4 % annual GDP increase in the second half next year.

Jinnyem, the deputy Prime-Minister, as well as the Ministry of Finance and Economy (MOFE) minister discussed economic operation policies for next year with Kang Pong-gyun, head of the Korea Development Institute, Song, Dae-hee, head of Korea Institute of Public Finance, Lee, Kyoung-tae, head of the Korea Institute for International Economic Policy (KIEP), and Cheong Haewang, head of the Korea Institute of Finance (KIF)

Kang Pong-gyun, head of the KDI, revealed that they raised economic expectations for next year to 3.6% from the current 3.3% announced in October. They predicted that ordinary surpluses will shrink to between 2.5 and 5 billion dollars and the consumer price index will rise by 3 to 3.5% based on drops in international raw material prices.

They also asked that while going into the first half of next year, corporate and financial institutions swiftly restructure and pursue aggressive domestic consumption levels.

The heads of the government-run institutions proposed that cutting or abolishing corporate taxes would be excessive because of failures to secure alternative tax revenues and attract investment. They also pointed out that the restrictions that reduce the willingness of corporations to risk money have to be lessened.