Business sector: `Time to bring economy back to normal`

The Korean economy has been reeling from the aftermath of the sunken ferry Sewol, which dampened consumer sentiment and corporate marketing efforts. The sluggish demand in the wake of the weak consumer confidence is particularly threatening small business owners.

Exports, which offset weak domestic demand and supported the Korean economy, are also sending warning signs. Moreover, the Korean won is valued higher than the currencies of Korea’s competitors, threatening the profitability of exporters.

While losing leadership after making mistakes in real estate policies, the Park Geun-hye administration’s economic team has trouble in properly working as a control tower. The three-year economic reform plan launched by the Park administration early this year is in danger of failure in less than a half year.

If the domestic consumption shrinks, its competitiveness in exports decreases, and the economic leadership remains absent, ordinary people’s livelihood would grow more difficult and the country’s mid to long-term growth potential would decline sharply.

With the end of the June 4 local elections, the business community claims that now is the time to bring the economy back to normal.

“Deregulations will help increase investment of the businesses sector, which would encourage a revival in domestic demand and job creation,” said Kim Jong-seok, a professor at Hongik University. “In order to overcome the trauma from the sunken ferry Sewol and revive the economy, President Park Geun-hye should overhaul the economic team and show her political leadership to restart the economic policies such as the reform of state-owned companies and deregulation, as she had released early this year ”