Escape from China’s 3D Economic Trap!

● China’s 3D Trap – Can “New Economy, AI” Hit 5% Growth?

Latest Trends in the Chinese Economy and Response Strategies

[1] Two Sessions Announcements and Growth Rate Target

The Chinese government has set a growth target of 5% for this year.
It has expressed its intention to actively utilize fiscal and monetary policies.
Analysis of the impact of policy implementation timing on economic stability and consumption promotion.
Economic forecast experts assess that while the commitment to achieving the 5% target is high, there are many challenges in various aspects.

[2] 3D Crisis and Changes in Internal Structure

The Chinese economy faces a 3D crisis, including deflation risk, debt risk, and demographic risk.
Deflation concerns are growing due to the gap between the inflation rate target and actual figures.
The accumulated debt of local governments and growth slowdown due to population aging are emerging as structural risks.
Market analysis suggests the need for a shift from the existing old economy-centered investment approach to supporting new economy and technology startups.

[3] Emergence of New Economy and Technology Innovation Strategy

China is moving away from traditional real estate and infrastructure investment and focusing on new technology fields such as AI, robotics, and electric vehicle batteries.
Policies related to the new economy are expected to play a key role in investment strategies and strengthening global economic competitiveness.
Policy changes are actively encouraging private sector participation and are analyzed to contribute to securing growth momentum through structural transformation.

[4] Roles and Investment Policies of Local and Central Governments

The central government clearly assigns growth targets to local governments and responds with financial support and government bond issuance.
Local governments proceed with construction and facility investments according to central policies, but concerns are growing about increasing debt dependence.
It is necessary to pay attention to the role and effect of fiscal policy and the complementary function of monetary policy.

[5] Global Market Reaction and Future Investment Strategies

The internal structural changes and new economy strategies of the Chinese economy are receiving significant attention from international investors.
The world market is observing the recovery momentum resulting from precise fiscal and monetary policy implementation, along with China’s growth slowdown.
Investors need to reorganize their investment strategies, paying attention to China’s policy shifts and technological innovations from a global economy and market analysis perspective.

[6] Future Outlook and Key Response Measures

The Chinese economy is maintaining a high growth target while simultaneously pursuing overcoming the 3D crisis and transitioning to the new economy.
Although short-term figures may fluctuate somewhat depending on policy changes and improved investment conditions, the possibility of securing a stable growth base in the long term is high.
Domestic and foreign investors need to prepare response measures considering key keywords such as fiscal policy, global economy, market analysis, and investment strategy.

< Summary >
Recently, China has launched efforts to boost the economy through fiscal and monetary policies, setting a 5% growth target.
At the same time, internal structural changes are underway, facing a 3D crisis including deflation, debt, and demographic structure issues.
Investment in the new economy sector (artificial intelligence, robotics, electric vehicle batteries, etc.) is beginning in earnest, and a transition from the old economy to the new economy is being attempted.
The coordination of roles between the central and local governments and changes in investment strategies are attracting attention in the global economic market.
The future Chinese economy is expected to focus on establishing a stable growth base while simultaneously seeking to overcome existing problems and create new markets.

*YouTube Source: [경제 읽어주는 남자(김광석TV)]

– [풀버전] ‘3D 함정’에 빠진 중국… ‘新경제·AI’로 5% 성장 노린다는데… 가능할까? | 경읽남과 토론합시다 | 신형관 대표

● KF-21, Unrivaled-Performance

Analysis of the Success and Global Economic Impact of the KF21 Fighter Jet Project

Success in Budget and Schedule Management

The project proceeded exactly according to the originally planned budget and schedule without any of the 7 revisions.
This is a considerable achievement considering the difficulties experienced by Western countries.
In this era of uncertain economic prospects and global economy, budget and schedule management plays an important role not only in national defense but also in overall technological innovation.

Comparison with Competing Projects

The Rafale and Eurofighter, which compete with the KF21, have seen increased development periods and soaring development costs.
Failing to meet the originally expected prices has created a significant difference in terms of cost-effectiveness in the fighter jet market.
On the other hand, our KF21 stands out in terms of export competitiveness by thoroughly implementing the planned content.

Supply Chain Stability and Response to External Shocks

When other countries were hit hard by global economic instability and supply chain instability,
We carefully managed various internal and external factors such as exchange rates, airplane length and width.
As a result of pursuing national defense technological innovation despite these external shocks,
The KF21 is now recognized as the most cost-effective model in the fighter jet market.

Market Competitiveness and Export Prospects

As a result of overcoming both internal efforts and external conditions, the KF21 has become very attractive in the export market.
This is a successful example where key words such as economic prospects, global economy, fighter jets, national defense, and technological innovation are combined.
We can expect positive ripple effects on the overall economy in the future.

The KF21 fighter jet project stands out for meeting the budget and schedule without 7 revisions.
While competitors Rafale and Eurofighter experienced difficulties in terms of schedule and cost,
Our KF21 secured export competitiveness by thoroughly responding to supply chain management and external factors.

*YouTube Source: [와이스트릿 – 지식과 자산의 복리효과]

– KF-21의 성능과 경쟁력은 독보적입니다 / 김민석 특파원

● Ghost Town – Turtle Island’s 95% Vacancy

The Current State of ₩560 Billion in Vacancy, the Pitfalls of Poor Development, and Future Prospects

1. Background and Investment Objectives of Building Development

The background of the building’s construction is due to a large-scale development project with a national investment of ₩3.6408 trillion from 2007 to 2020.
A new city development plan was established, including a marine tourism complex and an artificial surfing park (Wave Park) and other facilities.
At the initial planning stage, commercial revitalization was expected by utilizing nearby apartment complexes and coastal tourism resources, but actual demand forecasts were off the mark.
As such, the huge investment and planning related to real estate development place a huge burden on both investors and developers.

2. Vacancy Problems and Economic Pressure On-Site

The vacancy rate confirmed on-site is as high as 87% to over 95%.
Most of the building’s internal shopping malls and street malls are empty, showing a state of complete vacancy, contrary to expectations.
This vacancy problem, along with poor rental income, results in interest of ₩11 million per year, putting a large interest burden on investors.
In relation to real estate investment, it is intertwined with the best economic keywords such as “global economy”, “real estate”, and “investment”, and poor on-site performance is acting as a negative signal to the entire market.

3. Problems and Failure Factors of the Development Plan

Contrary to what was expected at the time of development, demand forecasts were significantly off due to insufficient nearby apartment complexes and delays in the completion of transportation infrastructure.
The main reasons for the extreme vacancy rate are pointed out as excessive advertising and excessive expectations at the time of sale, and unsystematic urban planning.
In particular, high PF loans and interest burdens, and lawsuits from tenants and investors are exacerbating the vicious cycle of poor development.
As a result, the negative impact of the “vacancy” problem is undermining confidence in the entire development project and negatively affecting the local economy.

4. Future Prospects and Overcoming Measures

In order to overcome the current vacancy hell, the government and local governments urgently need to prepare national measures.
It is necessary to re-examine the failed initial sales conditions and prepare a rental strategy based on practical demand.
In addition, since there are limitations with short-term vacancy resolution alone, policy support for infrastructure improvement and regional balanced development should be carried out in the long term.
Only when “development” problem solving and investment risk management are achieved simultaneously can the stability of “investment” be secured in the future real estate market.

Summary

A large-scale development project with an investment of ₩560 billion was planned with various facilities such as a marine tourism complex and an artificial surfing park, but recorded a vacancy rate of 87% to over 95% due to actual demand stagnation.
High interest burden, poor rental income, and excessive sales conditions are acting in combination to cause poor development and a vicious cycle, and long-term measures such as government support and infrastructure improvement are needed.
This article systematically conveys the current situation, problems, and future overcoming measures, focusing on key economic keywords related to the global economy, real estate, investment, vacancy, and development.

[Related Articles…]
• Vacancy Overcoming Strategy: Facts Investors Must Know

• Real Estate Market Outlook: Risk and Opportunity Analysis

*YouTube Source: [머니인사이드]

– “전국 최대 공실률..” 95%가 텅 비어버린 거북섬 상가의 비극ㅣ긴급출동 부동산 119