Bank of Korea warns: South Korean economy at risk of following in Japan's footsteps

The Bank of Korea warned on Thursday that the South Korean economy is becoming increasingly similar to Japan's past stagnation, and bold structural reforms and innovation are needed to prevent long-term low growth. The Bank of Korea stated in its latest research report that South Korea is "following in Japan's footsteps in many areas", and highlighted the continuously increasing private sector debt as a major concern. The Bank of Korea said: "In order to revitalize the economy, lessons must be learned from Japan's historical experience, and structural reform and creative destruction must be carried out to thoroughly change the outdated economic framework compared to the level of development."