Fox Capital Partners: South Korea’s government reduced its growth outlook and planned a supplementary budget as the global economy again faces uncertainty. The country’s finance ministry said that the economy will probably increase 2.8 per cent this year, down from its earlier prediction of 3.1 per cent. This would mean a slight uplift from last year but slower growth than in 2014.
Gordon Li-Chao, Chief Economist at Fox Capital Partners said, “Jobs will be the the priority as the government plans an $8.5 billion supplementary budget in the second half of the year. The budget is planned to be used to support large projects to stimulate the job market. In addition to the budget, the government will arrange a stimulus package totalling more than 20 trillion won.”
These pre-emptive measures are in response to the possible negative impact of Brexit through creative innovation. The government is also planning to expand domestic spending in response to worsening overseas conditions. Growth in South Korea has been weighed down by low levels of consumption, dipping exports and an aging population. New technologies, including cloud computing and the internet of things, being called the fourth industrial revolution, can help the economy elevate itself.
Fox Capital Partners Structural reforms in sectors such as finance, labour and education should help keep South Korea afloat during this so-called fourth industrial revolution. The country is also dedicated to its creative policies, including the construction of an environment for the development of new industries and promoting a system in which to implement new regulatory rules. The existing framework will be reconsidered to dispel with rules that hamper entrepreneurship. The government has also pledged that it will carry out further research and development policies to promote new industries.

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