Revise the Second Half Economic Index

On August 14, Korean government will open emergency economic ministerial meeting to review and to reinforce monitoring system as unfavorable international and domestic factors increase affect on Korean economy critically in the second half of this year.

Recently, unexpected factors have appeared such as the delay of US economy recovery, the possibility of price increase in petroleum, the anxiety about Korean stock market, etc. So the government should revise existing economic policy that was established under the assumption that US economy would recover steadily.

On 12th the Ministry of Finance and Economy said that the government would open emergency meeting of economic ministers on August 14. In the meeting, Shin Kuk-whan the Minister of the Ministry of Commerce, Industry and Energy, Lim In-Taek the Minister of the Ministry of Construction & Transportation, Kim Tae-dong the Minister of the Ministry of Agriculture & Forestry etc will participate. The meeting will be hosted by Chun Yun-chul, Vice Premier & the Minister of Ministry of Finance and Economy.

In this meeting, five main factors on Korean economy will be discussed; ∇ the delay of US economy recovery and the possibility of US attack on Iraq, ∇ the stagnation of Korean stock market, ∇ the revaluation of Korean Won and the possibility of export decreasing, ∇ industrial dispute, etc

Additionally, counter measures for price hike of property in some Kangnam areas that are being redeveloped and the negotiation of market for agricultural products will be discussed in the meeting.

Recently, the government had an analyzing meeting of economy tendency hosted by Kim Young-joo, the assistant secretary of Ministry of Finance and Economy with the participation of the ministries concerned economy and launched the operation ‘daily economy monitoring system’ at 12th.

The government also have established internal emergency countermeasure (contingency plan) to correspond to the increase of oil price as US attacks on Iraq.

At 20th, In the Hall of Bank Association, Chun, Vice Premier, will open ‘macro-economic review meeting’ in which major government and private economic research institutes will participate; KDI, Samsung Economic Research Institute, LG Economic Research Institute etc.

Chun, Vice Premier, said, “At the moment, the economic situation is not so bad, however there are many ambiguous factors. So it will be a interim review meeting.”

He also met Thomas Hubbard the US Ambassador to Korea and listened to US economy tendency such as the decline in the price of stock and the contraction of consumer’s confidence in US.

Kwang-Hyun Kim Kwang-Am Cheon kkh@donga.com iam@donga.com