Finance Minister cautions against hasty optimism about economy

SEOUL, May 11 (Yonhap) -- South Korea's economy is witnessing some "glimmers of
hope" but it is still early to become overly optimistic as a sluggish labor
market and weak corporate investment continue to pose a threat to the potential
recovery, the top economic policymaker said Monday.
"We have recently begun to notice glimmers of hope despite continuing stresses,"
Finance Minister Yoon Jeung-hyun told a conference in Seoul, citing the nation's
record-high current account surplus in March and stabilizing stock and currency
markets.
"Despite these positive indicators, I am still only cautiously optimistic about
the outlook for the Korean economy, because the economy still remains stressed
and will continue to require more work to turn it around," he added.
His cautious economic assessment comes amid budding optimism that the worst of
economic crisis is nearing an end, with factory output and exports showing sings
of bouncing back.
South Korea posted a record current account surplus of $6.6 billion in March
after a surplus of $3.56 billion in the previous month. Exports declined 19
percent in April from a year earlier following a 22 percent plunge in March.
Yoon, however, cautioned against hasty optimism saying that high unemployment,
idling factories and sluggish corporate investment continue to stand in the way
of a swift recovery.
"We are concerned that the future of the global economy is still uncertain.
However, if we just stay satisfied with short-term counter-measures to deal with
the current crisis, we would likely lose long-term competitiveness after the
crisis," he said. "I believe this is a right time for us to take long-term
measures that strengthen our future potential."
To bolster corporate activities and revitalize the slowing economy, the minister
said the government will continue its efforts to create "business friendly
environment" for local and foreign companies, removing regulations deemed to
hamper their activities.
"Entrepreneurship and creative innovation are the main drivers of economic
growth," Yoon said. "The government will work to ensure that the business
environment is conducive for the new business of both domestic and foreign
enterprises. We are also committed to removing unnecessary regulations so that
global companies can easily invest in Korea.
The minister added that efforts will be made to clinch free trade deals with "as
many countries as possible" while achieving "green growth." The government will
also step up its drive to nurture the nation's service sector which he believes
would create more jobs and bolster consumption.
kokobj@yna.co.kr
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