Korea puts emphasis on structural reforms next year, cuts growth outlook Korea

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The Korean government has cut its growth outlook for this year and the next... as concerns rise the country could slipping head-first into a low-growth trap.
To try and ensure this doesn′t happen, officials have pledged to push through with comprehensive structural reforms in 2015.
Hwang Ji-hye reports.
Korea has cut its economic growth target for this year and the next,... citing still sluggish domestic demand.
The finance ministry on Monday... lowered its 2014 growth outlook to three-point-4 percent and that of next year... to three-point-eight percent.
To pull the economy out of its low-growth rut,... the government′s economy management plan for next year... will put emphasis on structural reforms,... while maintaining its expansionary policy.
Under the government plan,... policymakers will tackle pressing risks head on.
One major task is to defuse threats posed by snowballing household debt.
To help mortgage loan holders and the self-employed better service their debts, the government will use a state housing fund to switch their short-term loans into longer-term loans... and swap loans carrying floating rates into those with fixed rates.
For the corporate sector, the government will introduce new measures to speed up the debt-restructuring process.
The move will allow troubled companies to begin workout programs before their financial health becomes irreparable.
Longer-term structural changes will focus on the labor, education, financial and public sectors.
The government will seek ways to raise the female labor participation and better utilize the country′s foreign workforce,... while educational reform will place emphasis on enhancing vocational training.
The government plans to promote apprenticeship programs,... where students in college or in vocational schools can receive training directly from related companies.
It will also cut red tape in the financial sector... and promote the use of IT at banks and other financial institutions to foster the so-called "FinTech."
In the public sector, the top priority will be on reforming the pension program for civil servants.
Through these structural changes, the government aims to lay the groundwork for sustainable economic growth, hopefully making 2015 a turning point for regaining the country′s economic vitality.
Hwang Ji-hye, Arirang News.