InfoAnda - FACTBOX-South Korea's faltering economic reforms

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Navigation Primary Navigation Home Singapore Asia Pacific World Business Entertainment Sports Technology Top Stories Most Popular Secondary Navigation Singapore Asia Pacific World Search Search: FACTBOX-South Korea's faltering economic reforms Reuters - Tuesday, January 6 SEOUL, Jan 5 - South Korean opposition MPs who have paralysed parliament for weeks said on Monday they were ready to discuss bills needed to help the export-driven economy through the global financial crisis. Following are major policy changes President Lee Myung-bak's government planned to implement, and what has happened to them. * Initially economic growth to be raised to 6 percent in 2008 from an estimated 5.0 percent in 2007 and 5.1 percent in 2006. - It has been revised down to a target of 3.6 percent for 2008. The finance ministry set next year's growth target at around 3.0 percent, while the central bank expects 2.0 percent. * Corporate income tax rates to be lowered gradually by 5 percentage points over five years. - This plan has been delayed but is still high on the government's agenda. * Financial supervisory agency to consider ways to bail out some 7 million delinquent small debtors. - This is still being worked out. * Government ministries and agencies to be merged or restructured to save running costs. - Lee was forced to scale down this plan due to political opposition. Last month he called for new measures to make it easier to cut the number of public servants. * Abolish limits on big-company investment in other firms. - The government tried and failed to implement this within 2008. * A 4 percent limit on non-financial companies' ownership in commercial banks to be replaced with a more flexible system, allowing for more ownership. - Regulators have presented a bill to parliament on these reforms but the legislation has yet to be approved. * The government to promote privatisation of the postal service. - Not yet done and little momentum for plan. * Part of the state-run Korea Development Bank to be sold to private investors. Proceeds to fund national projects. - The KDB plan has not been implemented yet. Email Story IM Story Printable View Blog This Recommend this article Average (0 votes) Sign in to recommend this article » Most Recommended Stories » Related Articles: Business Explosion cuts daily oil output by 12,000 barrelsAP - 32 minutes ago Thai stimulus plans to help prevent deflation - PMReuters - 37 minutes ago China sovereign wealth fund says cash is kingReuters - 37 minutes ago DRAM maker Powerchip seeks to cut costs, sell assetsReuters - 38 minutes ago TOPWRAP 3-U.S. and Germany weigh tax moves, markets cheeredReuters - 42 minutes ago Most Popular – Business Viewed US steel industry in collapse, eyes government aid: report Israeli army moves on Gaza City as war toll passes 510 John Travolta's teenage son dies, autopsy planned France leads alarm over Gaza, splits with US Rare Bugatti untouched for 50 years could fetch millions: report View Complete List » Search: Home Singapore Asia Pacific World Business Entertainment Sports Technology Top Stories Most Popular

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