S. Korea`s `misery index` rises sharply in 2008: think tank

SEOUL, Feb. 1 (Yonhap) -- South Korea's "misery index" measured by inflationary
prices and job market conditions rose sharply last year as the domestic economy
suffered setbacks in the face of a worldwide slump, a private economic think tank
said Sunday.
LG Economic Research Institute (LGERI) said the index that helps determine the
level of economic fallout felt by ordinary people rose to 11.8 last year from 9.6
in 2007.
It said the number is the highest tallied since the level of 20.2 in 1998, when
the country was trying to recover from the Asia-wide financial crisis that
resulted in the country's application for emergency bailout funds from the
International Monetary Fund.
LGERI said the 5.8 percent rise in consumer prices in 2008, up from 3.1 percent
the year before, is the main cause for the rise in the index. A rise in the
prices of grain, crude oil and other raw materials played a key role in soaring
consumer prices last year.
It added that because the main repercussions of the global liquidity crunch
caused by the collapse of Lehman Brothers Holdings Inc. did not take place until
mid-September, the effect on employment was limited.
The think tank said that the actual unemployment rate that reflects market
conditions fell slightly to 6.3 percent last year from 6.5 percent in 2007.
"Since the index did not fully reflect the worsening condition, there is a good
possibility that the index will worsen this year," a researcher said.
The latest report, meanwhile, said that provincial cities like Gwangju, Ulsan and
Daejeon were rocked the most by slower growth, fewer jobs and higher consumer
prices, with Seoul and the surrounding Gyeonggi Province feeling the least shock.
yonngong@yna.co.kr
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