GDP set to triple by 2030, given sustainable growth
Every person in South Korea will have to pay an additional 330,000 won ($US343) on average in taxes after the year 2010 if South Korea joins the ranks of advanced economies by that time, a government report showed. Asia’s fourth-largest economy will also need an additional US$1.14 trillion by 2030 if it intends to bring its social welfare system on par with those of member countries of the Organization for Economic Cooperation and Development (OECD), according to the report, prepared by the Ministry of Planning and Budget.The report, jointly compiled by the ministry and private institutes, showed that South Korea’s gross domestic product (GDP) per capita will triple to US$49,000 by 2030 if the nation succeeds in securing sustainable growth models and nurturing a stable social safety net. South Korea’s qualify of life rating would thus improve to the world’s 10th from the current 41th, the report said. To achieve these goals, the report suggested more spending on the social welfare system, encouraging a jump from the current 8.6 percent of GDP to 21 percent by the year 2020. The revised government budget would account for around 2 percent of the combined GDPs between 2006 and 2030. If adjusted for inflation, the money would amount to some 400 trillion won. The ministry said it would be able to obtain the necessary money without raising taxes until 2011, but there will be a need for discussion on how much the tax rates should be raised at that point. Briefed on the report, President Roh Moo-hyun said, "In pursuing economic growth, we have so far focused on material input such as labor and capital, but now we need to move toward people-oriented investment. He noted that the government will gather national consensus before making decisions on how to finance the budget after 2010.
