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PRESS RELEASES

Economy Proves Unbothered by North's Provocation

  • DivisionEconomic Policy Bureau - Economic Analysis Division
  • DateFebruary 17, 2017

Vice Ministerial Meeting on Prices and Emergency Task Force Meeting on the Economy

 

Economy Proves Unbothered by North’s Provocation

 

 

The Vice Ministerial Meeting on Prices and the Emergency Task Force Meeting on the Economy were held together on February 17, where participants looked into financial markets after the north’s provocation, checked on livestock product prices following the outbreaks of foot and mouth disease and AI, discussed plans for temporary workers and decided on a time table for the planning of measures to successfully cope with the 4th industrial revolution.

 

Financial Markets after North’s Provocation

 

The Korean financial markets were unbothered either by the north’s missile provocation or by the Kim Jong-nam assassination.  Net inflows of foreign capital have continued since the missile provocation and stock prices have risen.  The Korean won strengthened against the dollar and the CDS premium stayed stable.

 

* Net inflows of foreign capital (trillion won): 3.5 (January 2017), 0.5 (February), 0.5 (February 13-16)

* KOSPI: 2,075 (February 10, 2017), 2,079 (February 13), 2,082 (February 16)

* Dollar-Won exchange rate: 1,150.6 (February 10, 2017), 1,152.0 (February 13), 1141.5 (February 16)

* 5 year CDS premium (bp): 46.4 (February 10), 46.4 (February 13), 46.9 (February 16)

 

The government will continue to carefully monitor global and domestic financial markets, and will adequately implement market stabilization measures if necessary. 

 

Livestock Product Prices in the Wake of Disease Outbreaks

 

The prices as well as the supply of beef and pork have not been affected by the outbreak of foot and mouth disease, and egg prices, which soared in the wake of the AI outbreak, has been going down since the New Year’s Holiday due to increased imports and falling demand.  Chicken supplies are expected to increase as chicken farms under AI watch have recently been allowed to add new baby chicks on condition that they step up disease prevention efforts. 

 

The government will strictly deal with unfair price increases and hoarding, and will work to avoid a decline in meat consumption by giving accurate information on food safety concerning livestock products. 

 

Plans for Temporary Workers

 

The government has reviewed the 5 mid- to long-term goals to improve working conditions for temporary workers[1], and will work on policy packages to achieve the goals, which will be unveiled in the second half of this year. 

 

Time Table for the Planning of Measures to Cope with the 4th Industrial Revolution

 

The Committee for the 4th Industrial Revolution will be launched next week, which will work with the government working group.  A comprehensive plan that presents major policies and projects will be announced in April. 

 

Please refer to the attached pdf

 

 


[1] 1) Reduce the number of non voluntary temporary workers, 2) Increase decent part-time jobs, 3) Narrow wage gaps between permanent and temporary workers, 4) Increase the ratio of temporary workers with social security insurances, and 5) Promote transfer to permanent workers