Bank of Korea(BOK) Governor Lee Ju-yeol has called on the government to be consistent and faithful to market principles during the process of restructuring the nation's ailing shipbuilding and steel-making sectors.
Lee made the call during a monthly economic outlook meeting on Wednesday, where he talked about his recent visits to the country's industrial cities of Ulsan and Pohang.
During the two-day visit which ended on Tuesday, Lee said he talked with officials of companies based in the regions and learned that although firms are having difficulties due to lackluster demand and excess supply, they are trying to normalize their businesses and maintain their global competitiveness.
He said that at such a time it is important for the government to have blueprints for the future of the industries, closely communicate and consistently push for restructuring of the sectors based on market principles.
Regarding the zero-point-seven percent economic growth in the third quarter from the quarter before revealed on Tuesday, Lee said the performance is not satisfactory. However, he assessed that the country still managed to post a modest recovery despite difficult internal and external conditions, giving some credit to the government's timely policies.
Lee noted that concerns are being raised about whether such a modest growth trend will hold up, citing ongoing corporate restructuring and the implementation of the antigraft law as being among several factors for raising uncertainties.
Other factors he mentioned include the suspension of the production of Samsung Electronics' Galaxy Note 7, the possibility of the construction industry slowing down and the rise of trade protectionism across the globe.
Source: KBS World Radio