Interest and Inflation Rates to Be Kept Low
The government plans to keep long-term interest rates at a single digit and suppress inflation to under 3 percent for the next three years beginning this year.
Two million new jobs will be created to ``virtually'' attain a scenario of complete employment by 2003, while housing shortages will be resolved by 2002.
This year's economic growth is projected to reach 6 percent, inflation about 3 percent, unemployment 4 percent, and there will be a trade surplus amounting to $12 billion.
In its economic management plan for the year, the Ministry of Finance and Economy (MOFE) said yesterday that bankruptcy laws and corporate debt restructuring procedures will be overhauled to liquidate nonviable firms swiftly.
State enterprises will face the same strict set of corporate governance norms as private firms so those found uncompetitive will be shown the door, the MOFE said.
These plans represent a ``second period'' of restructuring in which economic stability will be consolidated while the imbalance of wealth distribution will be rectified and social safety nets will be strengthened.
To ensure the success of a low-interest rate and low-inflation policy, the MOFE will form a monitoring organization on the state of the economy jointly with the Bank of Korea, the Korea Development Institute, and the Federation of Korean Industries, a powerful industrial lobby group. …