Roh Expresses Optimistic View on Korean Economy

President Roh Moo-hyun said on November 3 that speculations about long economic stagnation are merely a groundless apprehension.

In a dinner party with the CEOs of foreign investment firms at the Grand Hyatt Hotel Seoul, President Roh expressed his optimistic view on the Korean economy for the next year. “The International Monetary Fund (IMF) stated recently that the Korean economy is undergoing a period of adjustment, but the fundamentals of the Korean economy remain strong, due to highly profitable large enterprises and the healthy banking system,” said Roh. The IMF predicted that the Korean economy would begin to recover from early next year.

President Roh said that he is well aware of short-term factors that undermine the economy such as high oil price, sluggish domestic markets, and a strong Korean won, and that he will put his utmost efforts to recover and stabilize the economy. “By enforcing investment plans that have already been announced, the government will try to revitalize the economy and maintain five percent of economic growth next year,” said Roh.

“Many people must be concerned with the aftermath of the Constitutional Court’s rejection of the relocation of the capital city. The government’s commitment for the balanced development of the country will continue,” said Roh. Roh added that he would soon propose an alternative way to decentralize the capital and reduce overcrowding in the Seoul metropolitan area for the balanced development of the country.

In addition, President Roh said that the North Korean nuclear weapons issue will be resolved peacefully through conversation within the frame of the six-party talks. If the railway that connects North and South Korea is installed and the factories in Gaeseong begin to manufacture products, security threats will be lessened and the investment environment will be more stable.

Jung-Hun Kim jnghn@donga.com