By Don Kirk International Herald Tribune - South Korea's gross domestic product fell 6.6 percent in the second quarter of this year from the second quarter of 1997, the Bank of Korea reported Thursday. The decline marked the second consecutive quarter of negative growth, the definition given by most economists for recession. Mr. Dodsworth discussed South Korea's economy and outlook Thursday with the International Herald Tribune's Don Kirk . The external situation is very much worse than people expected. It appears to extend across the whole of Asia, and Russia is a further factor.
Japan is clearly crucial.
In the past Korea could export its way out. That's what it's been good at over the years. The previous scenario would have had exports playing a prominent part. Domestic confidence and consumption would be better. When you have bleak outside conditions, it's hard to get confidence.