LG Economic Research Institute said that South Korea needs to strengthen domestic demand to overcome the ongoing slump in emerging markets.
 
The institute said in a report released on Tuesday that emerging economies are seeing slow growth due to the slumping economies of advanced countries and China.
 
The report said that in particular, given that South Korea’s export dependence on emerging economies stands at 56 percent, South Korea needs to raise domestic demand.
 
To do so, the report stressed the need to boost social safety nets, including pensions, and ease regulations in the service sector.