Deputy Prime Minister Choi Sang-mok held the 4th Advisory Meeting on International Economic Affairs with experts on July 19 to review the impact of major countries’ economic and trade issues on the Korean economy, as well as response strategies. The Advisory Meeting on International Economic Affairs is an ad hoc meeting introduced in April this year with an aim to cope with global uncertainties by listening to views from various experts and incorporate them into government policies.
DPM Choi noted that given the strong Korea-US alliance, it is expected that the amicable economic cooperation in trade and investment between the two economies will be maintained regardless of changes in administrations; however, considering the high external dependence of the Korean economy, it is meaningful to monitor the developments in the US presidential election and their potential impacts on the Korean economy. Furthermore, regarding the third plenary session of the 20th Communist Party of China (CPC) Central Committee (July 15-18), where China’s economic policy direction for the next five years was discussed, he stressed the importance of preemptively assessing possible spillovers on the Korean economy ahead of its implementation.
Experts viewed that the outcome of the upcoming US presidential election likely hinges on swing states, same as the 2020 election; irrespective of the winner, a strengthening of policies to contain China is anticipated, which requires the need for the Korean government to prepare proactive response strategies. In addition, experts emphasized that the CPC Central Committee’s third plenary session focused on economic recovery, and thus it is crucial to monitor trends related to: ①the ‘new quality productive forces’ strategy centered on advanced manufacturing, ②opening-up efforts to attract foreign investment, and ③fiscal and tax reforms aimed at restoring people’s livelihoods stability.
Please refer to the attached files.
