President Lee Myung-bak on Monday urged Koreans to have confidence in the country’s economy, pointing to reassuring data such as foreign reserves of over $300 billion, a relatively low state deficit and this year’s estimated trade volume of $1 trillion.
“I can assure you that the Korean economy is strong enough for our people to have confidence,” Lee said in a biweekly radio and Internet address.
Mentioning how a lack of market trust in the debt-ridden European countries and the downgrading of U.S. credit ratings exacerbated global economic concerns, Lee underscored the importance of cooperation between the government and the private sector, while stressing that Korea had strong economic fundamentals.
“When it comes to the economy, the psychology of the people also matters,” he said.
“Some people refer to the recent crisis as a crisis of confidence. In order to overcome this crisis of confidence, we need to have confidence in ourselves.”
Describing Korea’s fiscal soundness as the “healthiest in the world,” Lee noted that the national debt represents 33 percent of national output, a third of the average 98 percent of OECD member nations.
Thanks to the lessons learned from the 1997-98 crisis of low foreign reserves and the global financial crisis in 2008, Korea took enough precautionary measures to stave off any sudden influx or outflow of capital, Lee said.
The president attributed Korea’s continued trade surplus to domestic companies’ efforts to diversify export markets. Emerging markets now account for 73 percent of Korea’s exports, up from 51 percent in 2001, Lee said.
Lee vowed that his government will not loosen its economic vigilance, referring to the “emergency” economic meetings revived last week as well as regular consultative meetings between the government and the private sector.
The president also pledged to pay extra attention to competent small and medium-sized companies, small business owners and self-employed people as well as low-income earners, reiterating that next year’s welfare budget will be the biggest ever.
“It would not be desirable for the nation to be overwhelmed by a crisis mentality. On the other hand, we do need to be conscious of the crisis situation, realize the stark reality, and get ready to cope with any circumstance. Nevertheless, we should not lose our sense of balance,” Lee said.
By Kim So-hyun (
sophie@heraldcorp.com)
