Korean Economy Expanded 0.2% in 2009, Yet Concerns Remain

According to OECD, its preliminary growth figures disclose that Korean economy expanded 0.2% last year. Although this figure may seem impressive, given that G7 nations have underperformed with the U.S. marking an economic contraction of 2.4% and Britain, Germany, Italy and Japan shrinking by 5% last year, many concerns over Korea’s overall economic outlook remain.

Korea’s Finance Minister, Yoon Jeung-Hyun recently raised concerns over the self-sustainability of the private sector and the significant household debt levels in the country.

In the meantime, the Korean government has reportedly decided to limit the number of foreign workers working in Korea to the current level, while there has been a shortage of low-income bracket labor workers. A few years back, the Korean government decreased the number of foreign workers allowed to work in Korea due to grim job prospects in Korea. However, many Korean workers are not willing to take physically demanding hard work any longer despite rising unemployment.