The speed of economic downturn in the first half of 2009, which has been faster than those in fourth-quarter of 2008, is possible to be accelerated as what Korea experienced in past Foreign exchange crisis. Although “V-shaped” recovery may have been witnessed during previous turmoil in 1998, “L-shaped” path is expected after global financial crisis, which remains in recession because of slowdown in export growth accompanied by deterioration of international trade condition.
It is time to execute the domestic stimulus plan for restraining sudden decline in facilities investment, consumption expenditure, as result of the decrease in export. Job creation and social safety net should be fortified in order to make up for the depression in consumption. Especially for creating job, both job security and support must be placed on top priority. It is required to expand support for small and medium enterprises, which can resolve youth unemployment problem.
Furthermore, turnover and reemployment must be revitalized by improving job skill for both the employed and unemployed.