Harder Landing Of South Korean Economy Than Anticipated

The International Monetary Fund (IMF) representative for the Korean peninsula Ajai Chopra said on Thursday that ``although the IMF estimates that the economic growth rate of South Korea will be 3.5 percent this year, it can be lower than that.``

Chopra said at a meeting with Korean correspondent in Washington D.C. that ``the South Korean economy is hit by the downtrend of the world economic cycle, the fall of the Korean stock price and the rise of oil prices last year, and the delay of the structural adjustment of companies.

The IMF pointed out in a report on the result of the South Korea PPM consultation by the IMF board of directors that ``although the South Korean economy has increased by average 10 percent for the last two years, it is landing harder than anticipated.`` ``The domestic demands have shrunk and the exports, which are motive power of growth, are slowing down,`` said the IMF.

Chopra also announced that the IMF is planning to invite North Korea as a special guest to its general assembly, which is to be held in Washington D.C. at the end of September.

The IMF issued a letter of invitation to North Korea through the North Korean representatives in the UN to participate in its general assembly in Prague, Czechoslovakia, last September. However, North Korea did not participate in the assembly saying that the assembly was too imminent, leaving them with insufficient preparation time.

Han Ki-Heung eligius@donga.com