Deregulation to boost S. Korea's economic growth: official

SEOUL, Dec. 3 (Yonhap) -- South Korea's economy could grow 4 percent next year if
the government succeeds in carrying out its deregulation measures as planned, a
top economic policymaker said Wednesday.
"We have so many regulations that discourage foreigners from investing here,"
said chief presidential economic secretary Bahk Byong-won during a Seoul forum.
"It would be more effective than fiscal and financial measures (for economic
growth) to remove such unnecessary regulations and induce foreign investment."
"Especially, the government will continue to make efforts to ease rules regarding
the use of land and these efforts will make it possible for us to achieve 4
percent growth," he added.
Bahks's view is in line with the Finance Ministry's forecast of 4 percent growth
for Asia's fourth-largest economy. The outlook, however, is regarded by many as
too optimistic amid deepening concerns over a global recession.
Last month, the International Monetary fund cut its growth estimate for South
Korea to 2 percent from 3.5 percent. Such investment banks as UBS AG and
Macquarie Securities are forecasting that the South Korean economy will contract
next year due to slumping exports and weak private spending.
To revive economic growth, the central bank has cut its key interest rate by 125
basis points to 4 percent since early October and will meet to review its
monetary polices on Dec. 11. Experts forecast a further reduction in borrowing
costs.
The government, for its part, announced a raft of economic stimulus measures,
including tax reductions, to bolster the nation's slumping private consumption
and anemic corporate investment.
kokobj@yna.co.kr
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