1 Studies have also found that this may have increased potential output in the range of 5–10 percent. 2 Also labour market reforms, such as for instance an adjustment of the unemployment benefit replacement ratio by 5 percentage points has been estimated to give rise to 1.5% more output and 1.7% more employment over a period of 5 years.
Moreover, while there is much concern about the trade account deficit, this is mainly attributable to the increase in imports due to the surge in global commodity prices. In fact, Korea's exports reached an all-time high last year. Despite sluggish semiconductor exports due to the fall in unit prices, exports of other major items continued to grow last year.