In Seoul

SOUTH Korean President Lee Myung Bak’s finest hour to date came when he won the presidential election in December last year by a landslide.

It has since been downhill.

He promised to attract investment and grow the economy by seven per cent.

He failed on both counts.

Source: AP

Foreign investment was US$4.4 billion (S$6.5 billion) in the first half of 2000 but dropped to US$1.1 billion over the same period last year, said the Bank of Korea.

When asked about their investment plan for the second half of this year, a recent survey of 845 foreign firms by the Korea Chamber of Commerce found that seven in 10 investors are seeking to exit the country in favour of alternative destinations such as Singapore.

Investors were then spooked by the earlier spate of anti-American beef rallies.

Now they are frightened by the global economic crisis that has caused the Korean stock market to undergo a roller-coaster ride.

When it comes to the economy, his pledge of seven per cent has long been dropped.

His finance ministry is now saying that Seoul is unlikely to attain the growth target of 4.7 per cent.

The Korea Economic Research Institute has projected 4.2 per cent for this year and 3.8 per cent for 2009.

Due to his business background and campaign pledges, public perception of President Lee is intertwined with the state of the economy.

With the economy under siege, his popularity is stagnating in the 20 per cent range according to the latest survey by the Korea Society Opinion Institute.

In contrast his detractors stand at 59 per cent.

With the gloomy forecast for the Korean economy, President Lee may have little room for cheer going forward.

It will be a bumpy ride ahead.