Korea Risks Repeating Japan's Lost Decade, AlixPartners Says

South Korea is in danger of falling into a lost economic era like Japan as the nation lacks new growth drivers and is struggling to break out of a prolonged period of slow expansion, according to AlixPartners LLP.

Manufacturers such as shipbuilders and automakers are battling low productivity, high wages and overcapacity, while semiconductors provide an illusion of economic growth, said Yung Chung, Seoul-based managing director of the New York-based consulting firm.