Jeon-Hwan Bae, Professor at Chonnam National University, on South Korea's economy

In some aspects, I agree with such concerns from the outside of our country, and even some internal expert groups share these views. However, South Korea will not result in the everlasting recession like Japan. It is definite that the nation's economy turns grey, and the number of working generation has been diminishing rapidly. It is well known that the birth rate of Korea is the lowest in the world. Nevertheless, recent government policy on subsidizing kindergarten education begins to raise the birth rate, and silver industry is growing sharply. Concerning export activity, I presume that recent FTA with the EU and the U.S. will begin to make positive effects on trading budget balance, and so-called, Korean cultural stream has been flowing to other Asians as well as Europeans, Americans, and Latin Americans. The dissemination of Korean culture will advertise Korean commodities to the world.

First of all, I believe that the Korean entertainment industry such as movie, drama, game, music, and subsidiary services will drive future growth. Secondly, electronics and IT industries such as semi-conduct, TV, display, mobile, computer as well as automobile, chemicals, and petroleum industries will still be leading sectors for future economic expansion. However, current chaebul oriented economic structure should be transformed into small and middle size firm oriented structure for sustainable growth because once large firms begin to lose profits, the damage will affect our economy substantially. Besides, the economy now needs transparent competitions. It is unavoidable to have economic corruptions in the monopoly dominant economy just similar with dictatorship dominant political regime.

The government has been providing financial subsidy on the R&D as well as diffusion of renewable energy. Besides, recently we have introduced a renewable portfolio standard (RPS) for electric sector, thus power generation firms should produce renewable electricity or purchase renewable certificates at least 2% of total electricity production. In 2013, a renewable fuel standard (RFS) for transport sector is expected to be implemented. Then, at least 2% of petroleum will be provided by biofuels such as biodiesel and bioethanol. In the near future, hybrid or electric cars, off-shore wind power, solar power, bioenergy industries are expected to be major exporting sectors in our country.