Minister-designate says reaching 3 pct growth goal 'tough'

SEOUL, Feb. 5 (Yonhap) -- South Korea's finance minster-designate said Thursday
it will be "tough" to achieve the government's 3 percent economic growth target
for this year and that he would consider revising the goal after taking office.
Yoon Jeung-hyun, however, noted that he expects the economy to start to recover,
though at a slow pace, sometime in the first half. He was named to lead the
Ministry of Strategy and Finance in a recent cabinet shakeup.
"Affected by a deepening global slump, our economy is taking a steep downturn
with its fourth-quarter growth contracting," Yoon said in a written response to
questions by lawmakers ahead of his confirmation hearing to be held on Friday.
"Against this backdrop, it will be tough to attain positive growth for this year,
let alone achieve the previously-set growth target," he added. "We will consider
revising the objective by reflecting the latest indicators and outlooks unveiled
by think tanks."
Yoon's bleak estimate comes as the export-driven South Korean economy is under
growing strain from the global recession. The strain is growing more acute as
local consumers and companies cut spending for fear of worsening economic
conditions.
Major investment banks and think tanks predicted South Korea will post minus
growth this year for the first time in more than a decade. On Tuesday, the
International Monetary Fund forecast a 4 percent contraction, far lower than the
3 percent target set by the government in December.
In the fourth quarter, the economy shrank 5.6 percent from three months earlier,
the sharpest fall since the Asian financial crisis a decade ago, according to the
central bank.
"The economy will likely remain sluggish for the time being, affected by the
sharp contraction in the fourth quarter," the finance minister-designate said.
"But I expect a recovery, though at a slow pace, in the first or second quarter
of this year compared with three months earlier."
kokobj@yna.co.kr
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