Despite a range of difficulties facing South Korea, its economy will soon begin to pick up and the country may well evolve into another major Asian business center, according to Kim Kih Wan, South Korean ambassador for international economic relations.
Speaking at the Foreign Correspondents Club of Japan in Tokyo on May 27, Kim said the South Korean economy is now slowing down due to three factors: Cyclical elements, declining exports and structural problems. He said the government has put forward some innovative economic policies and once those reforms are implemented, much of the anxiety will diminish and distinct signs of improvement will begin to appear by the second half of this year.
Now that South Korea is a member of the Organization for Economic Cooperation and Development, Kim said, it has no choice but to upgrade its institutions and policies by implementing necessary reforms. Eventually, he said, “Korea has a good chance of becoming another major business center in Asia. You might call it a larger Singapore with strong democracy and a vibrant culture to boot.”