South Korea should pay closer attention to the construction sector and job creation to ensure sustainable economic growth in the face of weak exports, the country’s top central banker said Wednesday.
In an economic review meeting with private economists and experts, Bank of Korea Gov. Kim Choong-soo said the domestic market’s overall contribution to national growth is on the rise.
“Because construction and jobs are key to bolstering the domestic economy, the country needs to do more to revive the building sector and create more employment opportunities,” he said.
The remarks come as the BOK lowered this year’s growth target to 3.5 percent from an earlier estimate of 3.7 percent. This year’s numbers are lower than the 3.6 percent growth reached in 2011.
South Korea has traditionally relied heavily on exports to generate growth, but sluggish global economic conditions that are hurting trade have made it necessary to build up the domestic economy. Reflecting this, South Korea’s exports and imports contracted for the first time in two and a half years in March vis-a-vis the year before.
The BOK governor, meanwhile, said there is a need to open research positions in the central bank to non-South Korean nationals. “Such a move can draw in talented people and raise competitiveness and efficiency,” he said.
