During a meeting with economic policymakers on Tuesday, Korea’s Finance Minister Hyun Oh-seok reiterated the government’s three-year economic innovation plan. Under the plan, the country’s growth potential is expected to grow to around four percent and the annual per-capita income is forecast to exceed 30-thousand U.S. dollars with sights on reaching 40-thousand. The government also aims to achieve a 70-percent employment rate.

“We will come up with a roadmap for the three-year economic innovation plan by the end of February.”

Although experts say the goals that make up the plan are not easily attainable, they add that it’s not impossible. But in order to get there, they point to the importance of boosting domestic demand.

“Export industries that local companies mainly concentrate on have a limited impact on the domestic economy since they create fewer-than-expected jobs. It’s now important to boost the domestic demand, in particular, by strengthening the nation’s service sector.”

Regarding the growth prospects for this year, economists cite a number of major risks stemming from the global economy that could affect the domestic economy. That includes the U.S. Federal Reserve’s decision last month to taper its 85-billion U.S. dollar per month bond-buying stimulus measures, the slowing Chinese economy and “Abenomics” in Japan, which is pushing the Japanese yen lower, while eroding the price competitiveness of Korean exporters.

“The current trend of the weakening Japanese yen will hurt Korea’s exporters and could eventually lead to a reduction in Korea’s overall growth rate by 0.1 percentage points per year.”

In terms of uncertainties at home, the snowballing household debt problem and the sluggish real estate market are cited as major variables that could cut the nation’s growth rate. Experts say, however, that the recovery we’re seeing in advanced nations is still a good sign for the Korean economy.

Hwang Ji-hye, Arirang News.