Crisis Breakthrough Opportunity

● Fateful Crossroads-Korean Economy’s Post-Impeachment Era

Korean Economic Crisis, a Time of Transition: Overcoming Low Growth and Seeking an Innovative New Economy

Historical Turning Point and Today’s Decision

Today, April 4th, is a crucial decision-making day.
A lot of time has passed since the declaration of the state of emergency, and now we all need to re-examine the direction of the Korean economy.
Beyond political debates, we need to discuss economic structure improvement, innovative growth, and structural changes that the majority of the people can feel.

Qualitative Problems of Low Growth and Polarization

Compared to the 10-12% growth rate in the 1980s, the current growth rate is about 2%.
However, the problem lies not in the simple growth rate but in its quality.
Like the 2% growth in the United States, it may seem quantitatively fine, but in our case, the bottom 90% of the people do not receive real benefits.
A few industries such as semiconductors and automobiles have grown, but other manufacturing and service industries are experiencing difficulties.
This polarization phenomenon has already led to a national sentiment of the “lost decade.”

Lack of Innovation and the Need to Create a New Economy

Innovative companies that lead new industries, like those during the presidencies of Park Chung-hee, Kim Dae-jung, and Roh Moo-hyun, have not emerged.
While companies like Nvidia, Tesla, and Facebook are leading innovation in the global market, our companies remain in existing industries.
As a result, the major transformation and venture ecosystem to secure future competitiveness are sluggish.
In terms of domestic technology and knowledge investment, the failure to transition to a new economy while remaining in the existing structure is prominent.

Reorganizing the Flow of Capital, People, and Technology, and Make Money Work

Currently, financial funds are excessively concentrated in real estate.
Money, people, and technology must flow into innovative industries to secure future competitiveness.
The need for a transition in the Korea Development Bank and SME support financial system is emphasized.
In particular, a second Industrial Bank of Korea should be created to induce private-led innovation through long-term financial support.

Future Directions: AI Transformation, Digital and Platform Economy, Bio Industry, Climate Tech

In the future, the Korean economy should focus on four pillars.
First, an attempt at a major transformation led by future technologies such as AI.
Second, a transition to a digital and platform economy that creates global platforms like Facebook and Google.
Third, the development of the bio industry in line with the era of extended life expectancy.
Fourth, the development of eco-friendly technology and climate technology to respond to the climate crisis.
In this way, we must create a growth model that everyone can feel through innovation and new economy promotion, and financial transformation.

Summary

Today, April 4th, marks a turning point for the Korean economy.
The low growth of 2% compared to the 1980s is not just a simple number but a problem of the actual impact and polarization on the majority of the bottom population.
A few industries such as semiconductors and automobiles have grown, but innovation in manufacturing and service industries is sluggish, and the lost decade is being felt.
In the future, changes are needed with a focus on the new economy axes such as AI transformation, digital and platform economy, bio industry, and climate tech.
Currently, capital is concentrated in real estate, so financial transformation should be used to induce money, people, and technology to flow into innovative industries.
The key is to overcome the low growth of the Korean economy and to prepare a strategy to transform into innovation, a new economy, and financial transformation.
(SEO keywords: Korean economy, low growth, innovation, new economy, financial transformation)

*YouTube Source: [경제 읽어주는 남자(김광석TV)]

– 신경제 시대 개막? 저성장 돌파구 이제 나올까? 운명의 시기 왔다 | 탄핵 이후 한국경제 1편

● Shanghai Meltdown: No Money for Food

Analysis of the Causes and Current Status of the Chinese Economic Crisis – Key Points Summarized at a Glance

1. Decline in Restaurant Consumption by High-Income Earners and Contraction of the Dining-Out Industry

In major Chinese cities like Shanghai, there has been a sharp decline in the use of high-end restaurants frequented by high-income earners.
As fewer people enjoy lunch at various foreign and Western restaurants as before, the sales of related businesses have fallen significantly.
As a result, restaurant operators and landlords are suffering greatly.

2. Rapid Job Changes and Intensified Employment Insecurity

In the past, there was a culture of building a career in units of one to two years and moving to companies with better conditions.
Recently, even the boasting culture in such chat rooms has disappeared due to difficulties in finding employment and unstable employment environments.
Instead, there is a prevailing atmosphere of working hard to survive in the current job.

3. Difficulties in Trading Used Real Estate

In the Shanghai real estate market, price negotiations have become difficult, leading to delays in transactions.
As positive price offers and negotiations do not continue, both buyers and sellers are falling into anxiety.
The real estate transaction itself is unfolding as if it were a joke.

4. Chain Closures of Commercial Facilities such as Department Stores

Department stores in the Xujiahui area of Shanghai, which once flourished at the level of Myeongdong department stores, are closing one after another.
As facilities symbolizing the city’s consumption power decline, it also negatively affects consumer sentiment.
As a result, the entire ecosystem of commercial facilities is shrinking.

5. Foreign Investment Companies Withdrawing and the Problem of Empty Offices

As overseas companies withdraw from Shanghai’s central business district, the vacancy rate in buildings is rapidly increasing.
Although it is possible to enter without rent, it is difficult to operate due to the burden of management fees alone.
Global companies and foreign investors are moving to safer markets.

6. Changes in Taxis and Delivery Services

The problem of difficulty in catching a taxi during rush hour in the past seems to have improved now, but this is a phenomenon linked to labor shortages and decreased demand.
On the other hand, in the food delivery market, as the number of people looking for jobs increases rapidly, it is linked to a decline in service quality and intensified competition.

7. Sluggish Lending in the Financial Sector and Credit Crunch

Banks receive loan calls, but consumers and businesses alike are reluctant to take out loans, which is causing difficulties.
As lending for real estate purchases or business expansion contracts, the burden on the entire financial market is increasing.

8. Exodus of Foreigners and the Wealthy from the City

The wealthy and foreign residents in Shanghai are rapidly leaving.
They leave the city, concerned about factors such as the uncertainty of the Chinese economy, diplomatic situation, and tax increases.
As a result, the supply of consumption and service industries in the city is rapidly decreasing.

9. Changes in Lifestyle Patterns and the Disappearance of the Social Boasting Culture

The culture of boasting about overseas travel and luxury goods consumption in chat rooms in the past is disappearing.
Due to rising unemployment and economic instability, people are focusing on enduring the current situation rather than looking for new opportunities.

10. Contraction of China’s Three Economic Engines and Future Prospects

China’s economic engines were foreign investment, exports, and government investment and consumption.
Recently, all three axes have contracted due to the collapse of real estate, the withdrawal of foreign companies, and low consumption rates.
In particular, as export competitiveness decreases due to the imposition of export taxes by the United States, the overall decline of the Chinese economy is a concern.
The situation may change depending on future policy changes by the Chinese government and President Xi Jinping, but there are still many unstable factors.

< Summary >

Summary: Causes and Current Status of the Chinese Economic Crisis

Contraction of Restaurants and the Dining-Out Industry

Sharp decline in sales in the dining-out industry due to decreased consumption by high-income earners.

Job Market Instability

The culture of rapid job changes has disappeared, and competition for survival in current jobs is fierce.

Real Estate Transaction Slump

Difficulties in trading used real estate, difficulty in negotiation.

Closure of Commercial Facilities and Withdrawal of Global Companies

Increased office vacancy rate due to department store closures and withdrawal of foreign investment companies.

Financial and Consumption Contraction

Sluggish lending and worsening consumer sentiment, decline in exports and foreign investment.
Key SEO keywords such as the Chinese economy, real estate, exports, foreign investment, and global economic outlook are naturally included.

*YouTube Source: [머니인사이드]

– “밥 먹을 돈이 없어요” 상하이 폭망한 10가지 증거 [박수학의 중국속보]