Prime Minister Han Duck-soo struck a hopeful note on the economy Wednesday, saying he thinks the only way interest rates can go is down.
Han made the remark while attending a government meeting led by President Yoon Suk Yeol to discuss the direction of economic policy in the second half.
“We’re now in a situation globally and domestically where we can worry a little less about managing the economy,” he said, noting growth is at 2.6 percent — just behind the United States — and employment is at an unprecedentedly high level.
“Interest rates are still high, but if we are hopeful, I think the only direction in which interest rates can go now is down,” he continued. “Downward movements will start to show around the world in the second half of the year.”
The Bank of Korea has kept its key interest rate at 3.5 percent since January 2023, maintaining it for 10 consecutive decisions. Despite this, the rate remains the highest since 2008.
Han claimed the economy inherited from the previous administration of Pr
esident Moon Jae-in was in poor shape due to careless spending, with a deficit that alarmed the world and interest rate hikes of up to 10 times.
“When I looked at the economy we inherited at the start of this administration, I strongly believed our country could go bankrupt,” he said.
Han credited Yoon with “normalizing” the economy even while being panned by his critics.
He also praised South Korean companies for holding on in difficult conditions and continuing to engage in research and development in overseas markets, saying this led him to “gain confidence that our economy will never go bankrupt.”
Source: Yonhap News Agency
