[Editorial] Exports Declined, More Anxieties in the Future

The export in July recorded the drastic decrease from that of July last year. Since the statistic reports of the export and import began in 1967, the plunge of export in July is the greatest one. The anxieties have become realized.

The government explained that the reduction of exports is influenced by the stagnated semi-conductor industry of the advanced countries. The explanation is not wrong basically. However, it is frightening that the explanation of the government is exactly the same as that of the government right before the foreign exchange crisis. Peoples are getting sick and tired of the repeated excuses that the export declination is due to the decline of the world economy.

Nothing has changed for past four years since the government declared to establish countermeasures, saying that one of the direct cause of the foreign exchange crisis was the trade deficit by the stumbled semi-conductor exports. Everyone knows that the world economy is not going well. But one should recognize that China has continuously increased its exports by 10 percent every year.

The anxieties are doubled in that the slight surplus of the balance payments is only due to the reduction of imports in relation to the exports. The drastic decline of the equipment facility imports coincides with the outcome of the survey that the domestic companies do not have plans to invest in the equipment facilities this year, which gives negative anticipation on the recovery of the domestic economy.

It is understandable that the possible choices of the government are very limited. However, the government should not simply watch the sinking exports. The government and all other economic sides must pay their full cooperative efforts to break through this crisis.

First of all, the government must deregulate resolutely all the restrictions that prohibit the business activities. A cry for the strengthened regulation from a government side sounds very odd at the time that the government must function as to induce more investment rather than to control the business activities.

The roles of the Trade Negotiation Headquarters, rattling but without any substantiality, have to be re-adjusted. The business side also has to do its best to increase the competitiveness in the international market by continuous restructuring. In addition, the reconciliation of the labor and the management is a historical demand for the both sides.

When the export decline is connected to the shrink of the domestic economy, the Korean economy might fall into a vicious circle. The government must stop spreading groundless hopes that the economy will improve in the second half of this year and it should ask for cooperation from the business side after publicly accepting the serious situation of the Korean economy.