Since Ms Park took office on 25 February, she has been confronted with a number of developments that increased the downside risks to a stronger growth scenario in 2013. However, second quarter GDP growth showed that the pace of Korea’s economic slowdown was less pronounced than expected, while consumer price inflation seems to be bottoming out, indicating the downward acceleration could be over. More recent data has been mixed. Our forecast for 2013 GDP growth has been revised down to 2.5% from 3%. This is the result of a delayed recovery, with consumption showing more weakness than expected.