Economy

Korea’s Economic Status             

SEOUL, KOREA -- Some experts suggest that South Korea may face another foreign exchange crisis if the North Korean regime were to collapse following the death of Kim Jong-il.

Korea Credit Guarantee Fund (KODIT) will stage active campaigns to create 110,000 jobs in 2011 in keeping with the government's efforts to solve the youth jobless prob

After one year of discussion, the LCD panel cross-purchase between Samsung Electronics and LG Display will finally be realized.

Gyeonggi Credit Guarantee Foundation (GCGF) has extended a credit guarantee service in an aggressive manner to smaller companies to help tide them over financial difficulties amid the economic slowdown, a top manager of a credit guarantee foundation said.

"Since I took office in January 2005, I have exerted all-out efforts to help small and medium-sized companies and small business owners suffering from the financial pinch by extending enough credit guarantees," said Park Hae-chin, chairman and president of GCGF.

The government unveiled a 14 trillion won ($10.7 billion) stimulus package to calm down the unstable domestic and foreign financial markets which originated from the Wall Street turmoil in early November.

Supported by strong exports and facility investments, the national economy has grown 4.8 percent during the first three quarters of this year from a year ago.

The seasonally-adjusted economic growth during the second quarter especially was 1.8 percent compared with the first quarter, the highest growth since the fourth quarter in 2003 (2.7 percent). During the third quarter, too, the production growth of the service industries including manufacturing industry has shown an upward tendency.

The worries about excess liquidity are increasing all over the world. The Marshallian K, which is widely used as a liquidity index, has recently been on the increase both in the United States and Europe but not Japan. Along with those developed countries, Korea is also meeting with excess liquidity. In spite of continuing increase of the Call Rate, the key interest rate of the Bank of Korea, the domestic liquidity has been increasing since the fourth quarter of 2005.