Kimchi losing its spice

THE Korean economy had a poor start to the year as a result of weak external demand for its exports and a slow recovery in domestic demand activities. Contributing factors include a slowdown in the Chinese economy, delays in global economic recoveries, low oil prices and a weak Japanese yen.

Being an export-driven economy, Korea is affected by a weaker China, which is its biggest trading partner accounting for about 25 per cent of its exports. Korea's exports have contracted 8.1 per cent year on year in April and have declined for four straight months th…