The Korean economy has performed well and gained renewed momentum despite geopolitical tensions. Average growth has returned to 3 percent levels in 3 years and is expected to maintain these levels throughout the year. The new government is pursuing a paradigm shift to tackle the structural problems of low growth and polarization while laying the foundations for sustained growth. As highlighted in the recent ‘2018 Economic Policy Direction,’ the three pillars of economic policy directions are: creating jobs and improving income, accelerating growth through innovation, and promoting fairness. The overarching goal is to improve the quality of life so that it better reflects the income level of per capita GDP US 30,000 dollars this year.
The board paper (Increasing Resilience to Large and Volatile Capital Flows—The Role of Macroprudential Policies, www.imf.org) emphasized, in para 48, that “there may be cases where an MPM that aims to limit the build-up of systemic risk stemming from capital flows could be misclassified as a CFM only because it could directly or indirectly limit the scale or influence the composition of capital flows, even if it is not designed to do so.”