O RLY? NO WAI!
In a report done by Morgan Stanley taken from JoongAng Daily, South Korea was rated last amongst Asia's emerging economy (including Malaysia, Philippines, China, Taiwan & Indonesia among others) in terms of ability to handle any external financial shocks. Now as much as I somewhat agree on this issue (since almost any export-dependant country might have difficulties in handling external financial turbulances), why was did Morgan Stanley classify South Korea as an "emerging economy"?
With a 1 trillion dollar economy, and per capita income way above World Bank's threshold for 'high income economy', would they be already have a developed economy? But it seems like there's a difference between "emerging economy" and "developed country".
Nonetheless, even local South Korean think tanks, LG Economic Research Institute (they seem to have a lot of corporate funded economic research organizations) mentioned that due to the Debt Crisis plaguing America and Europe, they too think that Korea's economy will not meet its projected GDP growth.
Maybe it's time they should switch to a more domestic based economy rather than relying on exports.
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