202nd Ministerial Meeting on International Economic Affairs
202nd Meeting Discusses Risks to Financial Markets and Trade
Newly appointed Deputy Prime Minister Hong Nam-ki presided over the 202nd Ministerial Meeting on International Economic Affairs held on December 12, and discussed risks to financial markets and trade for next year, as well as preparation for those risks.
The following is a summary of Deputy Prime Minister Hong’s keynote address:
Financial market and trade situations
Korea’s financial markets and trade have been going well so far:
- The country’s CDS premium has approached the lowest in history
- Foreign investment has continued to flow in to the stock market, posting a net inflow
- Exports are expected to reach US $600 billion this year for the first time in history
However, there are concerns about risks from outside, such as
- Uncertainties in the global financial market, including the speed of US rate hikes and ECB’s winding down of its quantitative easing program
- Trade related uncertainties, including conflicts between the US and China, and US Section 232 auto investigation
- Possibilities of a global economic slowdown which might be led by the US and China
How to prepare for the risks
Financial markets
- Run a 24/7 monitoring of global and domestic financial markets
- Get contingency plans ready for any signs of market anxieties
- Work to maintain external soundness and sovereign credibility
Trade
- Closely monitor the developments of US-China trade conflicts, and plan contingency responses according to different scenarios
- Work to properly respond to US Section 232 auto investigation
- Work to expand markets through multilateral trade agreements, such as RCEP[1], PA[2] and CPTPP[3], as well as by pursuing policies to deepen ties with Asian countries, the ‘New Southern policy’ and the ‘New Northern policy’
- Increase export financing and promote overseas construction, including plant construction
Please refer to the attached pdf
