Korea’s trade with China unlikely to see huge surpluses: Finance Minister

Economy and Finance Minister Choo Kyung-ho speaks during a press conference with South Korean correspondents in New York on April 10. (local) [Photo by Yonhap]

South Korea will unlikely see a huge surplus in trade with China going forward, the country’s finance minister said on Monday.

“It is clear that China, as it has in the past, will not give our economy the chance to rebound quickly,” Economy and Finance Minister Choo Kyung-ho told Korean reporters in New York as he is in the U.S. to attend the Group of 20 Finance Ministers and Central Bank Governors’ meeting.

Choo, however, noted that a boost in China’s manufacturing industry will affect Korea’s exports and that consumption demand of Chinese tourists will have a positive impact on Korean exports.

“We need to wait and see if that will come quickly or later,” the minister said.

Choo said that the weak exports to China will not be permanent, noting that he does not believe that Korea will continue to see a deficit in trade with China.

The minister, however, said that “Korea will unlikely see a huge surplus with China like in the past.”

With regards to the government’s economic growth projection of 1.6 percent this year, Choo said that the overall environment will improve in the second half but there are many variables such as the economic situations in the U.S. and Europe.

Choo also said that the government remains vigilant in the developments seen in the global economy front, saying that Korea, as an open economy, is still prone to potential ramifications of economic uncertainty, like the recent banking failures in the U.S.

The minister also spoke about the criticisms against the economic policies by the Yoon Suk Yeol government, saying that the policies “are on track for normalization.”