According to the Bank of Korea, growth exceeded its earlier forecast of 7.5 percent.

The last time the Korean economy saw such exceptional quarterly growth was the fourth quarter of 2002, when it expanded 8.1 percent year-on-year.

“We have edged closer to a sustainable economic growth path,” said Kim Myeong-ki, head of the BOK’s economic statistics department.

“While exports contributed the most, thanks to improvements in the government and private sector, the economy is steadily recovering.”

Although the good growth was partially due to a sharp slump in the first quarter of 2009, buoyant exports and growing investment and consumer spending also had a big impact.

• Exports grew 21.3 percent and imports were up 22.1 percent from a year earlier.
• Manufacturing posted 20 percent growth, largely thanks to brisk sales of electronics products including semiconductors.
• Manufacturers saw their biggest growth in nearly a decade, from the 20.6 percent growth of the third quarter of 2000.
• Consumer spending was up 9.5 percent, the biggest increase in nearly a decade, when spending surged 11.4 percent in the second quarter of 2000.
• Investments on equipment and plants surged 28.8 percent, the sharpest growth since the third quarter of 2002, when it was up 29.9 percent.

The good growth is expected to ease Korea’s high unemployment rate. After hitting a 10-year high of 5 percent in January, the unemployment rate has slowly subsided. In February the unemployment rate was 4.9 percent and in March it fell to 4.1 percent.

Download the original Bank of Korea report here.

(Source: JoongAng Daily, Bank of Korea)

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In a report to President Lee Myung-bak, the Ministry of Knowledge Economy (sic) yesterday announced a set of policies aimed at achieving the twin goals of 5 percent economic growth in 2010, while at the same time reducing greenhouse gas emissions.

“The government will strengthen the competitiveness of the Korean economy to better deal with the structural changes of the global market after the crisis, and boost development of industries to achieve the 5 percent growth goal,” said Ministry of Knowledge Economy vice minister Rim Chae-min.

Economic policies outlined in the report to achieve growth target-

• Korea aims to export  $410 billion worth of goods in 2010 by targeting  large, fast emerging “middle” economies, such as China, India, and Indonesia.
• The government will support the semiconductor, automobile and mobile phone sectors through R&D of next-generation memory chips, electric vehicles and smart phones.
• Enhance the competitiveness of the country’s nuclear power, defense, and aerospace industries while encouraging private investment in the development of robotics, LED, and broadcasting convergence.

The government also plans to enhance the business environment for foreign investors through -

• Lifting some irrational regulations on technology development, ease rules on land transaction, and increase cash grants to foreign invested firms.
• Allowing foreign education institutes in Korea to make profit transfers to overseas, and to set new laws to attract foreign medical centers and schools in FEZs.

On Nov. 17, Korea’s government announced a bold plan to cut greenhouse gas emissions by 4% by 2020 from 2005 levels, representing a 30% decrease from the “business as usual” levels predicted for 2020.

“I’m ready to tackle global issues such as climate change not by words, but by actions. The world can address climate change only by taking action,”  – Lee, in a conversation with U.N. Secretary General Ban Ki-moon.

The ministry’s greenhouse gas reduction plan includes  -

• Introducing energy management guidelines for 46 large businesses that use more than 500,000 tons of oil-equivalent electricity per year.
• Introducing laws to open and test the operation of a carbon trade market next year.
• Securing energy for sustainable growth, through increasing self-sufficiency in oil and gas.
• International cooperation on developing green technologies.

Just like the Seoul Olympics in 1988, and co-hosting the Football World Cup in 2002, the G20 summit in Korea next year is seen by many as an opportunity for Korea to enhance its image in the global community. Korea is offering to host the COP18 – the UN conference on climate change to be held in 2012.

(Sources: Korea Herald, Korea Times -  ‘Lee, Ban to Help Clinch Global Climate Deal’, photo courtesy of the COP 15 website)

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In a report to President Lee Myung-bak, the Ministry of Knowledge Economy (sic) yesterday announced a set of policies aimed at achieving the twin goals of 5 percent economic growth in 2010, while at the same time reducing greenhouse gas emissions.

“The government will strengthen the competitiveness of the Korean economy to better deal with the structural changes of the global market after the crisis, and boost development of industries to achieve the 5 percent growth goal,” said Ministry of Knowledge Economy vice minister Rim Chae-min.

Economic policies outlined in the report to achieve growth target-

• Korea aims to export  $410 billion worth of goods in 2010 by targeting  large, fast emerging “middle” economies, such as China, India, and Indonesia.
• The government will support the semiconductor, automobile and mobile phone sectors through R&D of next-generation memory chips, electric vehicles and smart phones.
• Enhance the competitiveness of the country’s nuclear power, defense, and aerospace industries while encouraging private investment in the development of robotics, LED, and broadcasting convergence.

The government also plans to enhance the business environment for foreign investors through -

• Lifting some irrational regulations on technology development, ease rules on land transaction, and increase cash grants to foreign invested firms.
• Allowing foreign education institutes in Korea to make profit transfers to overseas, and to set new laws to attract foreign medical centers and schools in FEZs.

On Nov. 17, Korea’s government announced a bold plan to cut greenhouse gas emissions by 4% by 2020 from 2005 levels, representing a 30% decrease from the “business as usual” levels predicted for 2020.

“I’m ready to tackle global issues such as climate change not by words, but by actions. The world can address climate change only by taking action,”  – Lee, in a conversation with U.N. Secretary General Ban Ki-moon.

The ministry’s greenhouse gas reduction plan includes  -

• Introducing energy management guidelines for 46 large businesses that use more than 500,000 tons of oil-equivalent electricity per year.
• Introducing laws to open and test the operation of a carbon trade market next year.
• Securing energy for sustainable growth, through increasing self-sufficiency in oil and gas.
• International cooperation on developing green technologies.

Just like the Seoul Olympics in 1988, and co-hosting the Football World Cup in 2002, the G20 summit in Korea next year is seen by many as an opportunity for Korea to enhance its image in the global community. Korea is offering to host the COP18 – the UN conference on climate change to be held in 2012.

(Sources: Korea Herald, Korea Times -  ‘Lee, Ban to Help Clinch Global Climate Deal’, photo courtesy of the COP 15 website)

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Here is the summary provided with the story -

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• Korean companies have shifted their focus to emerging markets in Asia and elsewhere, with developing countries now accounting for over 70 percent of  exports, this off-sets the lull in demand from developed countries.
• Mr. Kwon stated that  his company believe that the global economy will expand 4.4 percent in 2010, largely due to 7.7 percent growth in emerging markets.
• They predict Korea’s exports will increase 10 percent or more in 2010, with domestic demand rising by about 5 percent.
• The major engines that will fuel the Seoul stock markets next year will be star exporters like electronics makers, automakers and steel producers; beneficiaries of improving domestic demand like builders and transportation-related firms, and financial companies.

(Source: JoongAng Daily)

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