On June 10, Deputy Prime Minister and Minister of Finance and Economy Koo Yun Cheol chaired the 269th Ministerial Meeting on International Economic Affairs at the Government Complex Seoul, where participants discussed the implementation of economic outcomes from summit meetings and country- and sector-specific cooperation measures for infrastructure upgrading with Middle Eastern countries.
Despite continued external uncertainties, including the prolonged tensions in the Middle East, the Korean economy has maintained a solid recovery, supported by robust exports, particularly in semiconductors, and a rebound in domestic demand. In particular, according to the preliminary data released by the Bank of Korea on June 9, both growth and income showed signs of improvement in the first quarter of this year, with real GDP growing by 1.8 percent quarter-on-quarter and nominal GDP increasing by 17.1 percent year-on-year. The government will continue to provide active support to ensure that this recovery momentum translates into greater overseas expansion by Korean companies and the creation of new growth engines.
To this end, the participants reviewed the implementation of economic cooperation outcomes achieved through summit diplomacy during the first year of the current administration and exchanged views on the direction of follow-up measures. They also developed country-specific cooperation strategies in response to ongoing economic and industrial transformation across the Middle East.
Above all, the government took stock of progress in implementing economic cooperation outcomes achieved through recent summit meetings with major partner countries. During the meeting, it was confirmed that new export items are being added in the agriculture, forestry and fisheries sectors on the back of expanded partnership in quarantine and sanitary measures. It was also assessed that, in the field of science and technology, follow-up consultative mechanisms and partnership plans have been progressing smoothly since the summit meetings.
In addition, the government will continue to operate an interagency monitoring mechanism to help deliver concrete outcomes from agreements reached at summit meetings. It will also proactively address any challenges arising during implementation through close cooperation among relevant ministries and agencies.
Meanwhile, the participants projected that demand for infrastructure upgrading would continue to grow as major Middle Eastern countries move beyond post-war reconstruction and pursue industrial diversification and broader economic transformation. Against this backdrop, they discussed measures to support Korean companies in leveraging these developments as new opportunities for cooperation.
Specifically, the government will identify sector-specific partnership projects in areas such as plants and energy, transportation and logistics, urban development, and digital infrastructure, tailored to the economic conditions and demand of individual countries, and actively support the participation of Korean companies in these projects.
To this end, a range of measures will be pursued, including identifying local project opportunities through overseas diplomatic missions and relevant organizations; providing integrated bidding support for Korean companies seeking contracts from major project owners in the Middle East; offering tailored financial support, including advance financing totaling USD 6 billion; promoting the establishment of a Middle East infrastructure strategic fund; and expanding high-level government exchanges and government-to-government (G2G) cooperation.
Furthermore, relevant ministries and agencies will leverage the summit diplomacy and high-level
cooperation channels established with key Middle Eastern countries to help address difficulties faced by Korean companies in securing contracts and making investments. They will also provide support throughout the entire project cycle, from project identification to implementation.
DPM Koo stated that the government would work closely with relevant ministries and agencies to ensure that the cooperative foundations established through summit diplomacy lead to tangible outcomes, including the overseas expansion of Korean companies and broader economic partnership.
Please refer to the attache files.
