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Toward Further Convergence? Korea’s Current Economic Prospects and Policy Challenges

Korea's Economy
About Korea's Economy

Korea’s Economy is KEI’s annual journal publication dedicated to the key issues of the day for the Korean economy. Articles in Korea’s Economy are designed to give the casual, but informed reader insight into issues related to Korea’s markets and financial institutions, economic reform, economic relations with the wider world, and North Korea. It is published jointly each year with the Korea Institute for International Economic Policy.

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Toward Further Convergence? Korea's Current Economic Prospects and Policy Challenges
Published June 16, 2014
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The Korean economy has fared well despite the recent global market turmoil and is well positioned to benefit from the global recovery given its strong fundamentals and skilled policymaking. But the country must rebalance its economic structure if it is to continue raising its population’s standard of living in an inclusive way and approach the income levels of the richest advanced economies.

Bold and politically difficult reforms are needed, including revamping the fiscal framework to better support rebalancing of growth toward domestic demand, strengthening of the social safety, deregulating the services sector, and addressing labor market duality while promoting greater labor market participation by female and aged workers.

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