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Opinion

South Korea must learn from Japan to avoid decade of deflation

Higher minimum wage and taxes on companies hoarding cash will help

| South Korea
Moon Jae-in won the presidency promising to wrestle powers away from behemoths such as Hyundai, Samsung, SK and Daewoo but he has put few wins on the scoreboard.   © Reuters

South Korea is confronting a new kind of crisis: deflation. Consumer prices fell for the first time on record in September, declining 0.4% year-on-year. This came alongside a 12% fall in exports, the 10th straight monthly loss for the engine of gross domestic product.

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