TOKYO -- South Korea is in a prolonged economic slump. The country's economy grew just 0.3% in the April-June quarter over the previous quarter, falling below 1% for the fifth straight quarter. The Bank of Korea, the country's central bank, in July further lowered its growth projections for this year by 0.3 point to 2.8%.
In addition to the economic downturn in China, which accounts for more than 20% of the country's exports, and a decline in export competitiveness resulting from the stronger won, management of big conglomerates, known as chaebol, and the possible collapse of the industrial structure, among other concerns, are a more serious structural problem in the longer term.
