Local economic research institutes have recently suggested gloomier outlooks for next year ’ s growth of Korea ’ s economy than the target set by the government . The Korea Development Institute , a major state - run think tank , last week cut its growth projection for 2015 from 3 . 8 percent to 3 . 5 percent , warning even this reduced goal might not be reached due to growing downside risks . The average forecast made by 17 research institutes here over the past month projected Asia ’ s fourth - largest economy to expand by 3 . 7 percent next year . These estimates are lower than the 2015 growth target set by the government at 4 percent , which many experts view as too optimistic under current economic conditions . The country ’ s economic growth rate has remained below 4 percent since 2011 , with a KDI report released last week estimating this year ’ s performance at 3 . 4 percent , down from 3 . 7 percent it suggested in May . The institute noted that sluggish domestic spending and slumping exports would continue to hamper the full recovery of the economy next year . Policymakers and private - sector economists expressed concern that Korea ’ s economy is facing growing risks from a depreciating yen , an economic slowdown in China and the eurozone and the impact of the expected hike in U . S . interest rates after years of monetary easing . A more serious problem facing Korea ’ s economy may be that domestic spending continues to remain anemic . Especially households are tightening their purse strings as their earnings have stagnated and economic uncertainties have deepened . They are even cutting spending on educating children , which they tend to reduce after saving all other living costs . As measures to help reinvigorate the economy , the KDI report recommended that the government maintain its expansionary fiscal policy for the time being and prevent household debt from further increasing . Over the past months , the economic team led by Finance Minister Choi Kyung - hwan has pursued policies largely in keeping with these suggestions . It is right for Choi to try to boost consumer spending by funneling corporate profits into households . But these efforts , including the introduction of taxes on piled - up cash reserves of big businesses , have not yet produced tangible results . More effective and pertinent policies should be implemented to enhance private spending . It is necessary to induce more affluent households to spend more . A record - breaking 30 trillion won ( $ 27 billion ) was deposited last week in pre - orders for shares of a Samsung Group affiliate , which goes public this week . This may suggest there is more room for expanding consumption spending by wealthy individuals . In the long run , however , it is essential to help working - class families earn more . A paper released last week by a local university professor showed that the lowest 40 percent of earners in the country accounted for only 2 . 05 percent of the total income in 2010 , with the highest 10 percent taking 48 . 05 percent . If left unaddressed , this widening income inequality will become a major stumbling block to reinvigorating the economy and enhancing its growth potential . 미래 엘리트 를 위한 영어 신문 주니어 헤럴드 	 더 많 은 기사 보 러 가 기 → [ 코리아 헤럴드 홈페이지 ] [ 트위터 ] [ 페이스북 ] 	 구독 신청 1588 - 0533 	 <ⓒ KoreaHerald ( www . koreaherald . com ) 무단 전재 및 재 배포 금지 >