South Korea's financial chief expressed concern over the widening gap between the haves and have-nots and reiterated the government's pledge to tackle the nation's economic challenges, a government report showed Sunday.
In the preface to the 2005 Economy White Paper, Kwon O-kyu, minister of finance and economy, said, "(the government is) faced with a number of economic difficulties such as an increasing gap between the rich and the poor, sluggish business sentiment and a slowing economy."
The minister, at a meeting with business leaders in Singapore, also said that due to a string of negative factors such as sluggish investment in construction, South Korea's economic growth rate is expected to decline next year. He has been visiting Singapore since Friday to attend the International Monetary Fund (IMF) and World Bank conferences.
Despite the gloomy forecast, business sentiment and domestic consumption will likely improve next year compared with this year since oil prices are forecast to stabilize, he added.
Separately, at the International Monetary and Financial Committee, the minister reiterated the need to increase the IMF voting shares of South Korea and three other countries to reflect their improved economic weights in the global economy.
The plea comes just one day before a poll on raising the quotas for four expanding nations including China, Mexico and Turkey closes. After the IMF's 24-member executive board approved a proposal on the issue on Aug. 31, member nations began voting on it online Sept. 1.
If 85 percent of the 184 members endorse the proposal, South Korea's voting rights would be raised to 1.346 percent from the current 0.764 percent. It would also become a member with the 19th-largest stake, up from the current 28th largest.
Seoul, Sept. 17 (Yonhap News)
Economic polarization deepening: finance minister |
