Economic Outlook
Given the rapid acceleration in inflation, the government has indicated that curbing inflation is its top economic policy priority, marking a shift in policy focus from targeting aggressive economic growth.
In June, the government announced an unprecedented economic stimulus package worth US$10 billion in an attempt to minimise the negative effect of surging oil prices. The package included tax rebates and subsidies.
The Economist Intelligence Unit (EIU) forecasts that upward price pressures will persist during the remainder of 2008 and ease slightly in 2009.
The consumer price index rose by 4.9 per cent year on year in May. The producer price index accelerated by 11.6 per cent in the same month.
Source: www.economist.com (South Korea Country Briefing)
Tourism Outlook
Korean Air has announced a zero commission scheme on all sales from agents as of 2010. This will have a major impact on travel agents who will be looking to generate revenue by other means. There has been a move towards developing more customised fully independent travel itineraries, incentives and specialised tour options.
Forward bookings for the peak season are down in comparison to last year, with economic problems, high fuel charges and the high New Zealand dollar continuing to have a negative impact on travel plans.
Subscribe
