Lee Hyung-il, Deputy Prime Minister and Minister of Economy and Finance, emphasized the need for proactive responses to external economic risks, including the restructuring of trade orders, the prolonged conflict in the Middle East, and global high interest rates. The government aims to address uncertainties through diversifying trade networks and stabilizing supply chains while supporting domestic companies' overseas expansion.
During the 274th External Economic Ministers' Meeting held at the Government Seoul Complex on October 12, Lee stated, "Given the high level of external uncertainty surrounding our economy, we must closely monitor and respond to external risks."
He noted that recent exports have shown a solid trend, supporting the growth of the economy. In August, the current account recorded a surplus of $46.11 billion, marking the 40th consecutive month of surplus. However, he identified trade blockades, issues related to trade with the United States, and the European Union's strengthened industrial protection measures as significant risk factors.
In his opening remarks, Lee said, "The government will closely monitor trade issues with major countries to respond to trade risks and will enhance outreach to manage these issues stably. We will diversify our trade network to expand the scope of our economy while fully supporting our companies' overseas ventures."
In the ongoing follow-up negotiations for the Korea-China Free Trade Agreement (FTA) on services and investment, the goal is to achieve mutual market access and tangible results in the cultural and financial sectors.
The government is also pursuing measures to support domestic companies in securing overseas contracts. It plans to establish a 'New Strategic Fund for Overseas Construction' totaling 3 trillion won, with 1 trillion won in government funding to attract domestic and foreign capital. The support system will shift from individual projects to a joint investment platform by country and region, expanding package contracts that link development, construction, and maintenance to ensure that overseas project outcomes benefit domestic small and medium-sized enterprises through equipment supply and maintenance participation.
Lee also pointed out supply chain instability due to the prolonged Middle East conflict and U.S.-China tensions as risks. He stated, "We will continue to promote supply chain stabilization by increasing domestic production and stockpiling of essential economic security items, building overseas production capabilities, and diversifying import sources."
Follow-up measures to connect diplomatic achievements to actual projects are also being pursued. The government plans to continuously monitor the implementation of agreements and memorandums of understanding (MOUs) between leaders and support key cooperation projects, such as the establishment of a dedicated industrial complex for Korean companies in India. Economic cooperation channels, including the upcoming Korea-India Finance Ministers' Meeting scheduled for November, will also be utilized.
Potential risks in the real and financial sectors, such as global high interest rates, fiscal risks in major countries, and possible adjustments in AI investments, are also under review. Lee remarked, "The government will closely observe fiscal trends in major countries and international financial markets, assessing the impact of changes in external financial conditions on the domestic economy to continue efforts for market stability."
Lee concluded, "The government will respond unwaveringly to external uncertainties as an 'economic team' and create new growth opportunities. We will ensure that the issues discussed today lead to tangible results on the ground without any setbacks."
* This article has been translated by AI.
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