Economists have warned that the Korean economy could plunge into a more severe recession than the global financial crisis of 2008. This is because the economic environment at home and abroad is deteriorating due to US austerity measures and a deepening trade deficit, and monetary policy tools and the government’s financial resources have been depleted during the economic crisis.
Kim Young-ik, a professor at Sogang University’s Graduate School of Economics, made the announcement at the regular meeting of the Private Financial Services Commission held near Gwanghwamun in Seoul on the 14th under the theme of ‘economic and financial market prospects and companies’ responses. and individuals’. Professor Kim said, “During the 2008 financial crisis and the 2020 Corona 19 pandemic, the Bank of Korea cut the base rate and the government’s expansionary fiscal policy overcame the crisis. “I can’t use monetary policy because of the price level, and I can’t relax my money because of the debt level,” he said.
Other experts unanimously expressed their concern that an unprecedented level of crisis could come.
Choi Chang-gyu, a professor of economics at Myongji University, who serves as the chairman of the private finance committee, said, “During the 2008 financial crisis, the Korean economy had an effect of recovery thanks to China’s growth. “Since international leadership or cooperation cannot be expected , the crisis may develop in a different way than in the past, which is a factor that makes it difficult for Korea to find a solution. ” He added, “In the previous crisis, when the value earned per dollar fell, Korea’s export competitiveness increased.
The population problem was also mentioned as a factor that worsened the economic crisis. Shin Kwan-ho, a professor of economics at Korea University, said, “At a time of heightened economic risk, the aging of the population is becoming more serious.
Lee Pil-sang, former president of Korea University, said, “Politicians are in disarray regardless of opposition, and the polarization of politics is serious. This could worsen the crisis,” he said.
Woo Sang-hyeon, head of the BC Card New Finance Research Centre, said, “Since a crisis can be an opportunity, the government should take this crisis as an opportunity to promote qualitative development rather than simple quantitative growth when considering the global economy so that the private sector can take the lead in overcoming and taking advantage of crises in the future,” he emphasized.
Professor Kim, known as ‘Korea’s Doctor Doom’, gave a forecast for the Korean stock market and real estate on the same day. Professor Kim said, “This is not the time to sell domestic stocks because they are currently undervalued.” He said, “The best time to buy is in the first quarter of next year.” As the prospect of prolonged high interest rates in the US increases, more and more people are predicting a further decline in the stock market.
Regarding the real estate market, he said, “If we analyze various statistics, it is at the beginning of the down cycle.
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