Wednesday, January 1, 2020

South Korea Economic Slowdown to continue in 2020 !!










South Korea's economy is 1.5 trillion US dollars; It is the 4th largest in Asia and the 12th largest in the world. South Korea, once one of the poorest countries in the world, escaped poverty and grew to become the World's 12th largest economy and the first Asian nation to host the G20 summit in 2010. It is a highly developed mixed economy dominated by family-owned conglomerates called Chaebols. However, the dominance of the Chaebol is unlikely to last and engenders the risk of slowing down the transformation of the South Korean economy for the benefit of future generations. South Korea is known for its spectacular rise from one of the poorest countries in the world to a developed, high-income country in just a few generations. This economic growth is called by some a miracle and described as the Miracle on the Han River, which has brought South Korea to the ranks of elite countries in the OECD and the G-20. South Korea still remains one of the fastest-growing developed countries in the world following the Great Recession. It is included in the group of Next Eleven countries that will dominate the global economy in the middle of the 21st century. Welcome to The Atlantis Report. Despite all the above positive notes, at present, The South Korean economy is going through a difficult time. The recent numbers show growth is the slowest it has been in six years. And a lot of blame has been put on family-run conglomerates like Hyundai, LG, and Samsung, as they dominate most of the economy. The Economic conditions in 2019 are getting worse for Korea. With not only the U.S.-China trade war influencing the nation's economy but also its own trade dispute with Japan that is yet to see a satisfactory conclusion. And this, of course, on top of a slowing global economy. Domestic conditions aren't looking much better. With falling investments and consumption. According to Bloomberg, major economic institutions' average growth forecast for Korea this year fell to 1.9 percent. Korea's exports fell for the 10th consecutive month, and the trend is likely to continue. This can't be good news as the Korean economy depends heavily on exports. We're coming across the term deflation quite often these days in the news. In the wake of Korea's record-low consumer prices. The Consumer Price Index in September fell below zero for the first time since Korea began collecting data. The average growth forecast for Korea this year is 1.9%. It's quite shocking to see the figure fall below the 2 percent range. As possible countermeasures, the IMF and the OECD are recommending a fiscal expansion. The Korean government is also stressing the need for a fiscal expansion. Korea’s economic growth rate dropped to a yearly average of 3% in the 2010s, raising concerns over growth potential. The economic growth rate is an indicator of the growth in the sum of all products and services that are produced by a country. As the total output is determined by labor, capital input, and productivity, we are able to see the contribution rate of each factor to economic growth. Accordingly, the KDI - Korea Development Institute conducted an analysis of the contribution of production factors to the decline in economic growth. It was found that there were no meaningful changes in labor input, while a slowdown was seen in physical capital and total factor productivity or TFP. Declines were also evident in these two factors in the per capita economic growth rate, implying that the value-added created by and the labor productivity of an individual has also dropped. The decline in the physical capital contribution is often seen when an economy reaches maturity. In Korea, this means that the downtrend in TFP growth was the primary driver of the fall in growth, and not that investments have stagnated. Improvements in the determinants of total factor productivity, i.e., systems, efficient resource allocation, education, and human capital, among others, may have slowed. On the other hand, the fall in external demand resulting from the slow growth in international trade following the global financial crisis may have been a contributing factor. In fact, since the financial crisis, Korea’s goods export has declined, and the growth in labor productivity, especially manufacturing, has deteriorated significantly. The IMF concluded that the fall in growth suffered by the majority of countries following the global financial crisis propelled the fall in growth potential. It also expects that it will take a considerable amount of time to return to pre-crisis levels. Due to such conditions in the world economy, it is hard to expect that Korea’s labor productivity will swiftly respond to a recovery in external demand. Based on the analysis, it is expected that Korea’s growth rate in 2020 will mark a high 1% if conditions remain the same, and a low-to-mid 2% if there is an uptick in productivity on continued innovation. The economic growth rate per capita is also expected to stand between a high 1% to a low-to-mid 2%. South Korea's economy continued to grow in the third quarter of 2019, but at a slower pace compared to the second quarter, which had been boosted by government spending. Third-quarter growth came in at 0.4 percent, slightly missing market expectations. One of the biggest problems Korea faces is that its state bonds keep increasing. Much attention is drawn to monetary policy meetings at the Bank of Korea, where a further rate cut is expected to be announced. If that turns out to be the case, then the nation's benchmark interest rate will return to 1.25% for the first time since 2017. Although South Korea cut its interest rate to boost its economic recovery, it's unlikely to help one of the most underlying problems in the country's economy: youth unemployment. Coupled with the nation's rapidly aging population, South Korea is struggling to find solutions for its future economy. Things don't look too good for the South Korean economy in 2020. The government revised down its growth outlook, citing weak exports and sluggish investment while U.S.-China trade tensions have waned for now. Meanwhile, Japan's recent decision to restrict exports of key materials to South Korea; has emerged as another threat. The government laid out measures to breathe new life into the economy. The key part of the plan is to offer tax incentives to spur investment. To boost domestic consumption as well as job growth. Another issue adding to woes is Japan's recent decision to remove South Korea from its list of so-called "white countries" -- which face minimal trade restrictions. There are reports that the latest action will also hurt Japanese companies as South Korea is one of Japan's biggest clients. The Korean government has begun a review of the legal grounds for filing a complaint to the World Trade Organization. With Japan's media reporting that Tokyo is considering adding more products to the export restriction list. As a response, the Korean government said it plans to invest about five billion U.S. dollars in developing home-grown, high-tech materials... to ease the nation's dependence on Japanese firms. Shifting gears and Uncertainties linger for the Korean economy in the second half of the year. As Japan has removed Korea from its whitelist of 27 countries, given preferential treatment in trade procedures. And the government has vowed to take all possible measures to help and support local industries likely to be hit by Japan's trade curbs. The Ministry of SMEs and Startups announced measures to help South Korea’s small and mid-sized firms develop their own parts and materials in a bid to overcome rising global trade tensions. With many concerns and speculations being seen, Money Monsters sat down with Minister Park Young-sun to hear about the current economic situation and the measures that the Ministry of SMEs and Startups is taking to tackle the problems. In order to efficiently implement the measures and to boost the competitiveness of local industries, the Ministry plans to continue operating the report centers throughout the nation. The Ministry of SMEs and Startups is also playing a matching role so that small and mid-size firms can develop the specific parts and goods that big conglomerates meed. The government is also utilizing all necessary measures, including financial support, to raise the competitiveness of the local industries by providing investment funds for Research and Development and operating low-interest policy funds. Japan’s export curbs show an accumulation of technological capabilities can determine a nation’s competitiveness. Minister Park Young-sun says her goal is to help local small and mid-sized firms achieve technological independence. President Moon Jae-in says one way to overcome what he calls Japan's "selfish" retaliatory trade restrictions. Is by carrying through the Korean peace process and by outdoing the Japanese economy with prosperous inter-Korean projects. It's the second time he has issued such a statement in three days. President Moon Jae-in's confident message on Japan's unjust economic retaliatory measures is that South Korea will turn the measures into an opportunity to push the economy forward. Japan can never stop our economy from leaping forward. Rather its export curbs will be a stimulant in fostering our resolve to become an economic power, he declared, speaking during a weekly meeting with his top aides. The president said he was able to realize once again the importance of promoting economic growth based on inter-Korean peace. The recent incident reaffirmed our sense of the urgent need to create a peace-driven economy. The realization of a peace economy through inter-Korean economic cooperation will allow us to catch up with Japan’s advantages immediately. The so-called peace economy, part of President Moon's envisioned plan of peace and economic development reinforcing one another. And providing a new growth engine for the regional economy. And the president said his country shouldn't be easily swayed on the peace economy, nor give up pushing for it because of the fluctuating relationship between North Korea and the U.S. He said as a responsible member of the international community. His country will continue to uphold the "universal value of humanity and international norms," take the lead in establishing peace on the Korean Peninsula and stand firm on the international stage. "Perhaps confirming that the trade dispute between Seoul and Tokyo will be a long-lasting issue. The president urged his administration to ensure the government's stated policy objectives are fully reflected when drawing up next year's budget. South Korea continues to face mounting internal and external economic challenges. With the nation's exports falling for the tenth consecutive month. While consumer inflation dipped below zero for the first time in September, this, while Japan's export curbs on Korea continue to weigh on local firms. Amid lingering concerns over the ongoing U.S.-China trade war; Which doesn't seem to be ending anytime soon. Korea's exports fell for the tenth straight month in September. The trade ministry says the nation's outbound shipments plunged 11.7% percent on-year to around 44-point-7 billion dollars. According to the latest reports, Japan's trade curbs against Korea had a greater impact on Japan than on Korea. Given that the Korean economy is an export-driven economy, the long-term export slump is undoubtedly one of the economic perils that the country faces now. Things aren't looking much better domestically either. For the first time on record, Korea's consumer price growth dropped into the negative territory in September. The government has dismissed the possibility of deflation, but concerns still linger. The stagnant domestic economy is reminding many of the so-called Japan's lost 20 years of economic depression. Amid a sluggish economy, Korea's economic growth rate forecasts are falling. With some expecting the rate to fall below 2% for the coming years. This was The Atlantis Report. Please Like. Share. And Subscribe. Thank You.











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“Control oil and you control nations; control food and you control the people.” Henry Kissinger


once a standing army is established, in any country, the people lose their liberty.”
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“If you are an ordinary person, then you can prepare yourself for war by moving to the countryside and building a farm, but you must take guns with you, as the hordes of starving will be roaming. Also, even though the elite will have their safe havens and specialist shelters, they must be just as careful during the war as the ordinary civilians, because their shelters can still be compromised.”
Henry Kissinger

"We don't let them have ideas. Why would we let them have guns?" Joseph Stalin

The people who cast the votes decide nothing. The people who count the votes decide everything.
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Governments keep a lot of secrets from their people . . .
Why aren't the people in return allowed to keep secrets
from the government?

PHILIP ZIMMERMAN, DER SPIEGEL

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Rabbi Stephen Weiss

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Jewish Voice, July - August 1941

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The Tax you pay is The Bill for Staying Stupid

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The few who understand the system will either be so interested in its profits or so dependent on its favours that there will be no opposition from that class, while on the other hand, the great body of the people mentally incapable of comprehending the tremendous advantage that capital derives from the system will bear its burdens without complaint and perhaps without even suspecting that the system is inimical to their interests.
The Rothschild Bros

"Debts must be collected, bonds and mortgages must be foreclosed as rapidly as possible. When, through a process of law, the common people lose their homes they will become more docile and more easily governed through the influence of the strong arm of government, applied by a central power of wealth under control of leading financiers.

This truth is well known among our principal men now engaged in forming an imperialism of Capital to govern the world.

By dividing the voters through the political party system, we can get them to expend their energies in fighting over questions of no importance. Thus by discreet action we can secure for ourselves what has been so well planned and so successfully accomplished."

USA Banker's Magazine, August 25 1924


Cutting Tax Rates stimulates Economic Growth creates more Profit , more Jobs and therefore The Treasury ends up with more Tax Money
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Taxation is legalized Theft
UNKNOWN

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Patriotism is the last refuge... to which the scoundrel clings .... Steal a little and they throw you in jail ..steal a lot and they make you king ....

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There is NO political answer to a spiritual problem!
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Po
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The modern definition of racist is someone who is winning an argument with a liberal
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When People lose everything and have nothing left to lose , They Lose It !

GERALD CELENTE

Your Greatest Teacher is Your Last Mistake
DAVID ICKE

The one who Controls the Education System , Controls Perception
UNKNOWN

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Albert Einstein

In The Left Nothing is Right & in The Right nothing is Left
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No man escapes when freedom fails; The best men rot in filthy jails. And those that cried 'Appease! Appease!' Are hanged by those they tried to please
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Freedom is not Free
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Don't Steal The Government Hates The Competition

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Jesse Ventura


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There is a Class War going on in America, & unfortunately, my class is winning." Warren Buffet

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"First they came for the Socialists, and I did not speak out--
Because I was not a Socialist.

Then they came for the Trade Unionists, and I did not speak out--
Because I was not a Trade Unionist.
Then they came for the Jews, and I did not speak out--
Because I was not a Jew.
Then they came for me--and there was no one left to speak for me." UNKNOWN