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Balancing record-breaking exports with greater domestic activity is a key economic objective
of President Park and the government has put together a detailed plan to reinvigorate the
housing market as the first concrete step to boost demand.
Finance Minister Hyun Oh-seok told a meeting of economy-related ministers on Wednesday...
that there is an urgent need to stabilize skyrocketing housing rent fees to allow consumers
to spend more on other things. To control prices in Korea's traditional rental
system called jeonse, the government will make sure some 500-thousand new homes will
be built over the next three years. The government will also offer low-interest
loans totaling 11 trillion won, or 10 billion U.S. dollars to new home-buyers to ease their
burden. It'll also draw up tailored plans for people
seeking to rent their home on a monthly basis.
Korean consumers' confidence in the economy edged down in February from the previous month
as uncertainty lingers despite an overall improvement in economic activity.
And this comes after President Park on Tuesday vowed to boost domestic demand in her three-year
economic plan. Connie Kim reports.
Korea's consumer sentiment index -- a gauge of consumers' overall economic outlook, living
conditions and future spending -- dipped for the first time in five months in February.
The Bank of Korea says the index came in at 1-hundred-08 this month, down one point from
January when it hit an almost three-year high. It isn't all doom and gloom, however, as the
reading,... which is above 1-hundred, still means optimists outnumber pessimists.
That said, consumers feeling less confident of the economy could raise red flags about
future growth at a time when President Park is pushing to create more balance between
domestic demand and exports. The president stated as much Tuesday when
she laid out her three-year economic innovation plan.
"I will look to strengthen economic fundamentals, pursue a dynamic and innovative economy, and
achieve a balance of domestic demand and exports to successfully push the Korean economy forward."
The Bank of Korea says February's consumer sentiment figure was largely due to consumers
not being able to feel the economic recovery in their everyday lives.
The sub-index measuring medical expenses and housing expenses dropped two points and one
point respectively in February. In order to achieve the president's targeted
economic growth of four percent by 2017, all eyes are fixed on whether the government has
the right measures in place to boost flagging domestic demand.
Connie Kim, Arirang News.