Korea's 10 Major Trends for 2013

SERIWorld.org Korea's 10 Major Trends for 2013 Kim Seong-Pyo Research Fellow, Samsung Economic Research Institute Continuous Growth Below Potential Increased Risk from Housing Debt Worsening Financial Management and Chronic Low Interest I The BOK forecasts two straight years below 3% Growth: 2.0% (2012) to 2.8% (2013) I Korea's three major growth engines I Purchases have frozen as housing I Household debt has increased continuously #41.4 tillion (2011) to #48 triion won (2012) I Continuous global stagnation Base interest in major economies is Economy at the lowest level in history US, Japan (zero interest), EU (0.75%), Korea low growth (2.75%) Continuous have weakened prices fall 6 4 Seeking a Breakthrough in Inter-Korean Relations Social Designing a Korean Style Welfare System Integration to be Tested I Flexible policy in the South to stabilize the North's foreign relations I lf negotiations do not reopen in the first half or the impasse becomes prolonged, provocations like the third nuclear test will continue T "Work friendly" welfare and increased efficiency in administration is increasing (Job creation, growth I Expansion of welfare and securing financial soundness I Demand for cohesive leadership Politics Launch of the new presidency engines, social safety nets) Revamping 7 for a High Efficiency Management Structure 8 Low Price, High Value Consumption Debate on 10 Jobs and Extension of the Retirement Age Growing Use of Big Data I The strong won, weak yen and pervasive low growth will require both cost effectiveness and I Smart consumption that adjusts the timing of purchases I Consumers will target sales periods and families will participate, The market for used products will grow I Building of a new industrial ecosystem I Discussion about introducing a wage peak system I Growing interest in coexistence of generations at work Industry & management Pressure to change the paradigm with big data revenue creation I New growth engines should be reviewed and arranged in the business portfolio Copyright © Samsung Economic Research Institute. All rights reserved. SERIWorld.org Korea's 10 Major Trends for 2013 Kim Seong-Pyo Research Fellow, Samsung Economic Research Institute Continuous Growth Below Potential Increased Risk from Housing Debt Worsening Financial Management and Chronic Low Interest I The BOK forecasts two straight years below 3% Growth: 2.0% (2012) to 2.8% (2013) I Korea's three major growth engines I Purchases have frozen as housing I Household debt has increased continuously #41.4 tillion (2011) to #48 triion won (2012) I Continuous global stagnation Base interest in major economies is Economy at the lowest level in history US, Japan (zero interest), EU (0.75%), Korea low growth (2.75%) Continuous have weakened prices fall 6 4 Seeking a Breakthrough in Inter-Korean Relations Social Designing a Korean Style Welfare System Integration to be Tested I Flexible policy in the South to stabilize the North's foreign relations I lf negotiations do not reopen in the first half or the impasse becomes prolonged, provocations like the third nuclear test will continue T "Work friendly" welfare and increased efficiency in administration is increasing (Job creation, growth I Expansion of welfare and securing financial soundness I Demand for cohesive leadership Politics Launch of the new presidency engines, social safety nets) Revamping 7 for a High Efficiency Management Structure 8 Low Price, High Value Consumption Debate on 10 Jobs and Extension of the Retirement Age Growing Use of Big Data I The strong won, weak yen and pervasive low growth will require both cost effectiveness and I Smart consumption that adjusts the timing of purchases I Consumers will target sales periods and families will participate, The market for used products will grow I Building of a new industrial ecosystem I Discussion about introducing a wage peak system I Growing interest in coexistence of generations at work Industry & management Pressure to change the paradigm with big data revenue creation I New growth engines should be reviewed and arranged in the business portfolio Copyright © Samsung Economic Research Institute. All rights reserved.