Discussion on solutions for economic depression, low birth rate and aging population with related organizations at the Gyeonggi Economic Vitalization Meeting on November 18

◇ Gyeonggi Governor Kim Moon-soo is presiding over the 43rd Gyeonggi Economic Vitalization Meeting’ on the 7th-floor meeting room of Gyeonggi Research Institute (GRI) on November 18. ⓒ Gyeonggi G-News

Gyeonggi Governor Kim Moon-soo emphasized that it is necessary to have consciousness of crisis and reconcile opinions among economic subjects in order to overcome the ongoing economic depression.

On November 18 at the Gyeonggi Research Institute (GRI), Gyeonggi Province hosted the 43^rd Gyeonggi Economic Vitalization Meeting with Governor Kim Moon-soo as well as economy-related organizations and experts such as Gyeonggi Federation of Economic Organizations (GFEO) president Kang Ho-moon, Federation of Gyeonggi Chambers of Commerce president Baek Nam-hong, GRI president Hong Sun-young, and Bank of Korea Gyeonggi Head Office chief Bae Jae-soo.

Under its topic of 2014 Economic Forecast in Korea and Overseas and Tasks of Gyeonggi Province this meeting was presided over in the order of presentations by experts and general discussions.

“Recently, budget cuts of Gyeonggi Province are making various organizations suffer,” said Governor Kim. “The figures show that the economic condition will improve next year compared to this year, but I doubt whether that will be possible. I hope you, as participants of this meeting, share some good ideas on how to perceive the current situation and join our forces for improvement.”

◇ Governor Kim emphasized here that “everyone must be aware of the seriousness of the current financial crisis, and overcome the crisis by reconciling opinions among economic subjects.” ⓒ Gyeonggi G-News

“The economic growth rate in Korea in 2014 will be 3.4% to 4.0%, and the economic recovery of Gyeonggi Province and the entire nation depends on the sustainability of increasing exports of home appliances and automobiles that take up a large part of Gyeonggi industry,” said GRI senior researcher Cho Seong-jong who gave a presentation on the ‘Gyeonggi Province Economic Policies and Direction of Countermeasures.’

According to Cho, the increase in export of Gyeonggi Province this year led to the increase in production of the manufacturing industry in Gyeonggi as well as the increase in national export and production. Furthermore, the increased employment in Gyeonggi Province from July to October contributed 30.6%p to the national increase of employment, which indicates that the economic recovery of Gyeonggi Province will lead to the economic recovery of the entire nation in 2014.

In addition, Cho suggested economic policies and countermeasures by largely dividing them into three categories: real estate, jobs and ordinary people’s economy, and small and medium-sized enterprises (SMEs).

Major countermeasures include 1) alleviating polarization of the housing price, 2) minimizing underwater damages, 3) creating jobs in the new-growth service industry, 4) reinforcing consulting and entrepreneurship education for independent businesspeople, 5) ensuring internal stability of policies to develop SMEs, and 6) resolving the issue of manpower shortage by improving the working environment of SMEs.

Oh Suk-tae, senior vice president of Societe Generale, gave a presentation on the topic ‘2014 Economic Forecast in Korea and Overseas’ and talked about next year’s economic conditions of Korea and overseas such as the U.S., Europe, China and Japan.

◇ GRI senior researcher Cho Seong-jong is giving a presentation on the ‘Gyeonggi Province Economic Policies and Direction of Countermeasures.’ ⓒ Gyeonggi G-News

“According to the announcement by the Bank of Korea, the sensory inflation rate is three times higher than the actual inflation rate,” said Choi Jae-han, chief of the Gyeonggi Branch of Korea Federation of Small and Medium Business, in the following discussion. “Many organizations say that the economy is getting better, but most SMEs say they don’t really feel it. There must be ongoing policies to support SMEs, but it’s a shame that Gyeonggi’s budget for the economy sector showed the highest rate of reduction.”

Kim Dong-geun, Assistant Minister for Planning and Coordination of Gyeonggi, explained: “Gyeonggi Province is last among 16 cities and provinces in Korea in economics, culture and tourism, and SOC. This is because these fields are relatively more self-supported by the province rather than receiving support from the government.”

Kim also added, “This phenomenon represents the budget difficulties of Gyeonggi Province as well as the issue of financial independence of 248 primary local organizations in Korea.”

“The budget is increasing in the field of welfare, which is determined by the central government,” said Governor Kim Moon-soo. “Only 3% is available for the local government to use based on self-judgment, so this is not a local autonomy in the true sense. I have made constant efforts in the last 8 years working as a governor, but it’s extremely difficult to actualize the true local autonomy.”

“I read in today’s newspaper that China’s head of state Xi Jinping said there is no choice but to die without innovation, but our government seems to have an easygoing awareness,” he went on. “There is no reconciliation of opinions on the past and the present such as our history or the presidential election, so it’s tough to discuss the future. We must reconcile opinions among economic subjects to overcome today’s serious issues such as low birth rate and the aging population.”

ⓒGyeonggi G-News | Lee Jun-gyun eyekle0723@hanmail.net 

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