South Korean Economy at a Pivotal Point, Warns Finance Minister Choi Sang-mokMixed Performance Seen in KOSPI 200 Closing Prices

Seoul, South Korea – South Korea's finance minister, Choi Sang-mok, has expressed concern about the country's economy, which is at a crucial juncture due to a declining potential growth rate, driven by a lack of innovation and diminished momentum across various industries.

According to Yonhap News Agency, During a discussion session with experts and relevant institutions, Choi emphasized the urgency of addressing these economic challenges and securing long-term growth. The session, organized by the Ministry of Economy and Finance, focused on exploring strategies to overcome current economic hurdles and stimulate innovation.

Choi pointed out that high entry regulations and weakened growth pathways have hindered innovation, affecting the dynamism of industries and companies. This has led to a consistent decline in the potential growth rate of the South Korean economy. He stressed that 2024 represents a critical moment for an economic rebound and underscored the importance of resolving structural issues and fostering innovation.

According to policymakers, the country's potential growth rate, which measures the highest possible economic growth without inducing inflationary pressures, is estimated to be around 2 percent. This figure is influenced by demographic shifts and other challenges facing the country.

The government forecasts the economy to grow by 2.2 percent in 2024, buoyed by a rebound in the semiconductor cycle and rising exports. This projection, however, only slightly exceeds the potential growth rate and falls short of the anticipated global economic growth of about 2.9 percent for the year.

Choi, who recently assumed office, has committed to developing a comprehensive roadmap to achieve a "dynamic economy." Experts participating in the session echoed Choi’s concerns and highlighted the necessity of preparing for transitions to digital and green economies. They also stressed the need to enhance productivity and implement educational and labor reforms to improve social mobility, as reported by the ministry.

Seoul, South Korea – The Korea Composite Stock Price Index (KOSPI) 200 witnessed a mixed performance in its latest closing price list. Among the notable stocks, SHINSEGAE INTERNATIONAL experienced an increase, while several others like LOTTE TOUR and LG Uplus saw declines.

According to Yonhap News Agency, SHINSEGAE INTERNATIONAL closed at 16,820, marking an increase of 270. In contrast, LOTTE TOUR ended the day at 9,710, down by 200, and LG Uplus closed at 9,980, a decrease of 30.

Notable movements were also seen in other major stocks. SAMSUNG LIFE rose by 400 to close at 63,200, while KT and G fell by 2,600 to end at 87,400. LG Display and Kangwonland also saw their share prices decline, closing at 13,260 and 15,260, respectively.

Tech giants NAVER and Kakao experienced downturns, with NAVER closing at 230,500, down by 1,000, and Kakao at 60,400, a decrease of 400. NCsoft dropped by 3,500 to 219,500, while KIWOOM closed at 92,700, down by 800.

In contrast, Hanwha Ocean and HD Hyundai Infracore saw their stock prices rise, closing at 23,000 and 7,620, respectively. Similarly, KEPCO KPS and KEPCO E and C witnessed increases, ending the day at 33,450 and 67,000, respectively.

Other notable stocks with varied performance included HYUNDAI ROTEM, LG ELECTRONICS, Celltrion, DAEWOONG PHARM, and HYUNDAI DEPT ST. In addition, CJ, HANJINKAL, IS DONGSEO, and S-Oil showed varying trends in their closing prices.

Notably, LG Innotek, LOTTE CHEMICAL Corp, HMM, HYUNDAI WIA, KumhoPetrochem, Mobis, and HANWHA AEROSPACE experienced declines in their stock values, while S-1 and Hanchem's closing prices also dropped.

DWS concluded the day with a decrease in its stock price, indicating a day of mixed results for companies listed on the KOSPI 200.

scroll to top