Author/Editor:

International Monetary Fund. Asia and Pacific Dept

Publication Date:

February 13, 2018

Electronic Access:

Free Full Text (PDF file size is 1421 KB).Use the free Adobe Acrobat Reader to view this PDF file

Summary:

A cyclical recovery is underway, with limited impact from the recent geopolitical tensions. Inflation has rebounded to around the Bank of Korea’s 2-percent target, although it displayed some volatility. The current account surplus narrowed in 2017, but is expected to remain large above 5 percent in the medium term. Potential growth has slowed down and its prospects are hampered by unfavorable demographics and slowing productivity growth, driven by structural weaknesses. Income equality and polarization are worsening, partly reflecting inadequate social protection as well as labor and product market duality. The government’s program aims to address impediments to growth and income inequality.

Series:

Country Report No. 18/40