First, let me recap Japan's "lost 20 years".
It can be summarized as
ONE the asset bubble burst.
TWO increase of household debt.
And THREE deflation.
So, just how similar is the Korean economy to Japan's?
Korea's housing prices had peaked in 2006.
BUT since 2009, there has been an accelerating downward trend.
The country's household debt topped 1 trillion U.S. dollars last year, surpassing the 85 percent of the GDP threshold a level that some think tanks believe is dangerous.
It means people will shy away from spending.
Deflation had also been a talking point for some time in Korea.
Korea's inflation has been kept BELOW the lower end of the central bank's target band.
Hence, Minister Choi's strong warning today
(CG ) saying "should the Korean economy stay the course, it could face a situation similar to Japan's 20 years of lost growth."
an expert that I spoke to says Korea's "structural economic difference" from Japan could be its saving grace.
"In the case of Korea, the nation's export dependency is fairly high compared to Japan, so even on cases of domestic demand, Korea can use this to overcome the economic crisis."
Experts say Japan's Abenomics, designed to reflate the Japanese economy, has been WORKING more or less.
Now, will 'Choi Kyung-hwan'-nomics, pledging aggressive measures to boost the Korean economy work?
We'll have to wait and see as the government is expected to lay out its economic policy direction on Thursday.
Connie Kim, Arirang News.