South Korea to Focus on Job Creation and Deregulation in 2007

South Korea is set to prioritize economic policy in 2007, with a focus on creating jobs, stimulating corporate investment, and deregulating the financial sector. Finance Minister Kwon O-kyu announced the country's top economic priority at the opening ceremony for the local stock market, aiming to push the economy to a new stage despite negative projections for 2007. The government plans to improve the service industry and business environment to enable companies to create quality jobs through increased investment.

Key Takeaways:

• South Korea's top economic priority for 2007 is creating jobs, vitalizing corporate investment, and deregulating the financial sector.
• Lackluster business investment and low job growth have been the major reasons behind weak household income growth in South Korea's economy.
• In the first 11 months of last year, South Korea added only 295,000 new jobs, with an estimated 5% gain in gross domestic product (GDP).
• The government will push to improve the service industry and business environment to enable companies to create quality jobs through increased investment.
• The government will continue to deregulate the local financial industry in 2007 by enacting a law to break down barriers among financial industries and reviewing regulatory guidelines.
• The government will also adopt international accounting guidelines to improve transparency and credibility in the markets.

Statistics:

• 5% estimated gain in gross domestic product (GDP)
• 295,000 new jobs added in the first 11 months of last year
• 11 months duration of new job additions data
• 2007 planned focus year for economic policy

Sources:

• Yonhap
• Asia Pulse
• Samsung Economic Research Institute