President-elect Roh Moo-hyun said the government needs to seek ways of preventing land speculation at the candidate site for the new administrative capital. In a meeting in Seoul with economic ministers, including Deputy Prime Minister Jeon Yun-churl, Roh said his economic team will implement measures to raise the nation’s potential growth rate to 7 percent over the next five years. According to Jung Soon-kyun, spokesman of the presidential transition committee, Roh said that there is a need for the government to hike South Korea’s potential economic growth rate to 7 percent level during his tenure for the sake of sound economic growth. But Roh was quoted as having said that cooperation from the political community is necessary to realize the target.

``The President-elect has also advised the Ministry of Finance and Economy to draw up countermeasures to effectively cope with possible land speculation at the candidate site of the new administrative capital,’’ said Jung.

MOFE Minister Jeon Yun-churl has reported that the growth rate will be in the 5 percent range this year despite the uncertain economic environment. Jeon predicted that the economy would recover slowly from the second half of this year.

However, he reported to Roh that the youth jobless rate would continue to be high and irregular workers accounted for 52 percent of all employees.

Minister Jeon said that the government would pursue revision of the real estate taxation system to raise the financial burden on owning real estate in the new administrative capital candidate site, in an attempt to prevent excessive speculation.

Lee Keun-young, chairman of the Financial Supervisory Commission, said that the current household debt level is not serious in view of borrowers’ capability to pay back loans.

``If the household loan market slows down to a serious level, it would have a negative effect on the nation’s economy since people will face a credit crunch and consumption will be slowed. Thus, the FSC will pursue expanding the number of financial companies participating in the government-led workout program for bankrupt individuals,’’ said Lee.

He added that it would extend the loan maturity period, which now stands at five years, while diversifying loan payback methods.

By Kim Sung-jin Staff Reporter