Economy

After one year of discussion, the LCD panel cross-purchase between Samsung Electronics and LG Display will finally be realized. According to an industry spokesperson, Samsung Electronics and LG Display will conclude an MOU at the Renaissance Hotel on Aug. 25.

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.

These days have seen growing attention directed at environmental issues. In summit meetings of major powers of the world, global warming is getting the limelight. In Korea, too, the public interest in environmental issues, such as the dust storm in the spring, has heightened as compared with the past. Also, regulatory measures on imported goods are taken in consideration of the environment, and discussions on emissions reduction of carbon dioxide are certain to be activated with major countries playing a key role.

Ever since 2003, India has been recording high economic growth rates for three consecutive years, of which the annual average has been over 8%. By maintaining a stable growth basis ever since the economic liberalization of the 1990's, it has been rising as a second China.

Especially due to the improvement of income levels following economic growth, private consumption has been in good condition.

Exports have also been maintaining increasing trends of an annual average of over 20% ever since 2002.