The economic downturn appears to have flattened out, with some economic and confidence indicators showing favorable movements. In the financial markets, stock prices have rebounded and the flow of funds to the corporate sector is on a steady rise. The Korean won has appreciated and foreign currency liquidity conditions have improved substantially as the current account has shifted to a sizable surplus.
The first is the possibility that the extended weakness in the labor market reflects permanent shifts in the composition of jobs - which is often referred to as industrial restructuring.