Tuesday, August 5, 2014

Korean Revivalism: Choinomics, Not Abenomics

Choi - nicknamed "the Bull" for his hard-charging style - is promising more, including an expansionary budget next year and possibly beyond. Further potential steps include relaxingconstruction regulations, incentives for companies to hire part-time workers, and encouraging investment in services and smaller enterprises .Some commentators credit "Choinomics" for the ruling party's strong showing in last week's by-elections, where it won 11 of 15 contested seats, strengthening its majority and making it easier for Choi and Park to push further reforms.

"The opposition will be more receptive to the government's push to boost domestic demand," said JPMorgan economist Lim Ji-won. However, Choi is unlikely to pursue policies that would inflict much pain on chaebol, which power South Korea's exports and back Park's conservative Saenuri Party.
Therein lies the rub: how much reform can you make when those who need reforming are your benefactors--thechaebol? Certainly there have to be other enterprises of note other than Korean giants? Watch this space

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