Seoul - XINHUA
South Korean President Park Geun-hye vowed Monday to speed up growth to around 4 percent through a three-year economic innovation plan.
Park told a press conference marking the first anniversary of her swearing-in that she will push ahead with the three-year economic blueprint, which focuses on resolving structural and chronic problems inherent in the export-driven economy in the course of rapid growth.
With the three-year economic plan, the potential growth rate will rise to the 4 percent range, while the employment rate will rise to 70 percent and the per capita national income will expand to 40,000 U.S. dollars in her five-year term, she said.
The fast growth entailed various side effects such as chronically flagging domestic demand caused by heavy dependence on large-size exporters, fast-follower growth strategy with lack of innovation and abnormal business practices.
Worries mounted about the economy as it could be trapped in low growth due to aging population and lackluster investment in the private sector.
The Organization for Economic Cooperation and Development forecast that South Korea's potential growth rate may plunge to some 1 percent about 25 years later due to the fast aging population and the expected drop in productive population. The potential growth rate was estimated at around 3.5 percent among local economists.