SOUTH KOREA

Deficit With Japan to Top Agenda: South Korean President Roh Tae-Woo said last week that South Korea’s huge trade deficit with Japan would top the agenda when he meets with Japanese Prime Minister Kiichi Miyazawa this week. Miyazawa is scheduled to arrive Thursday for a three-day visit that will include emotional talks with Roh and other Seoul officials. Aware of public concern over high inflation and bulging trade deficits, Roh has also said he will devote his remaining time in office to recovering South Korea’s economic vitality. Roh faces crucial parliamentary and presidential elections this year and successful handling of economic issues is seen as a key to winning. Roh’s single five-year term ends in February, 1993. Roh urged South Koreans to work harder and spend less, saying overconsumption has led to high inflation and a whopping increase in imports. In 1991, South Korea’s trade deficit reached a record high of about $9.6 billion. Inflation was running at an annual rate of nearly 10%, the highest in 10 years. South Korea had enjoyed large surpluses since 1986, but its exports began losing ground in 1990 to cheaper products from other Asian competitors.