The Korea Development Institute forecast that the decline in global oil prices would have a positive effect on the Korean economy.In its report analyzing the relevance of oil prices and its economic impact, the state-run think tank said that if oil prices hold at $49 per barrel, the Korean economic growth rate would increase by 0.2 percentage points.It also stated that if oil prices drop by 10 percent, the nation’s production costs for overall industries would decrease by 0.67 percent, the manufacturing sector by 1 percent, and the service industry by 0.28 percent. Exports would increase by 0.55 percent.Under the scenario, Korea would see the biggest drop in production costs.
