Subscribe
E-Paper
 |
| Choi Kyung-hwan Finance minister |
"Reforms should be a key to achieving full-fledged economic recovery," he said in a meeting with heads of major research institutes.
He said Japan has been in recession despite quantitative easing policies because its structural reforms fell flat.
"We should learn from Japan's case," he said.
"The reforms will help improve money flows and workforces," Choi said.
The government is planning to form a "corporate" rental market citing Booyoung Group's main business in large-scale rental home construction, which offers thousands of rental houses to tenants.
The deposit-based housing system "jeonse" is fast transforming into monthly rent.
He also said that the nation's economy is slowly recovering from a slump in the second quarter thanks to expansionary policies and real estate stimulus measures.
"In the third quarter, the government's spending and construction investments have been on the rise, gradually recovering to the level before the Sewol ferry sinking occurred. Also, the property market is slowly reviving," he said.
Consumer spending has shrunk since the fatal Sewol ferry sinking in April.
Choi said that economic recovery momentum remains weak as the major manufacturers' performances are not robust and money is not circulating well.
For next year, he predicted that uncertainties triggered by external factors from Europe and China will emerge as major hazards to the economy, but they will not deter growth.
"As the global economy's growth is expected to expand next year, Korea will also see an improvement in overall economic situations which will bring the actual effects of the expansionary macroeconomic policies," he said.
The minister also said that the IMF-OECD evaluation praised Korea's three-year plan for being "exemplary," noting that if the plan is implemented successfully, Korea will grow 4.4 percent, the largest growth rate in the G20 (which is on track to average 2.1 percent).
He attended the last G20 Finance Ministers and Central Bank Governors Meeting of Australia's Presidency in Brisbane, Australia, Nov. 15.
The IMF and OECD, at the G20's behest, evaluated the national growth strategies and announced their findings at the last meeting.
They praised Korea for developing a growth strategy in line with the principles of the Brisbane Action Plan, specifically recognizing Korea's regulatory reform efforts and investment-boosting policies.
