South Korea vows support, deregulation as growth slows

SEOUL  -South Korea’s government on Wednesday promised policy support and deregulation to boost economic growth which it expects to slow next year at a much faster pace than expected previously.

The government predicted Asia’s fourth-largest economy would see growth slowing to 1.6 percent in 2023 from an estimated 2.5 percent this year, more pessimistic than the central bank’s forecast made in November for 1.7 percent growth.

Finance Minister Choo Kyung-ho told a news conference the lower growth forecast reflected the worsening global economic outlook.

South Korea’s export-driven economy is faced with cooling global demand after a wave of monetary policy tightening by major central banks and high inflation.

The government promised to lower taxes and ease regulation on the property sector to ensure a soft landing.

President Yoon Suk-yeol ordered ministers to push ahead with reforms of key areas, especially labour-management practices in a country with a long record of fractious industrial relations.

The government also said it would provide policy and financial support to bolster exports, predicting overseas sales would fall 4.5 percent next year after a 6.6 percent gain this year.