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Challenges for Lee Myung-bak to revitalize economy
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According to a February 21 report from the bank, South Korea's commodity prices in January rose at the fastest pace in more than 9 years on soaring crude oil and grain costs.

The report said the price index for raw materials and intermediate goods, an indicator for consumer inflation in the coming months, posted 17.3 percent year-on-year growth in January, the steepest annual rise since October 1998 when commodity prices registered 20.6-percent growth.

"Economic revival is our most urgent task," Lee said in his inaugural speech at the National Assembly in Seoul last week.

He emphasized economic revitalization through efforts such as deregulation and market-friendly reforms, improving people's lives through creating jobs and educational reform, increasing incentives for foreign investment.

"New engines of growth must emerge assuredly, the economy grow vigorously, and more jobs be created," he added.

The president also called for the construction of a "Grand Canal" linking Seoul with the port city of Busan to slash transport costs and create a new tourist attraction.

The most daunting task, among others, is how the president can honor his commitment to create about 600,000 new jobs every year, said Yonsei University economics professor Lee Doo-Won.

Around 300,000 jobs were created last year but companies worried that their efforts would be undermined by soaring raw material prices, the professor added.

Challenges still lie ahead, but the new president's can-do image honed during his business career and later as the mayor of Seoul may ensure people's confidence in his administration.

(Xinhua News Agency March 6, 2008)

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