Korean economic minister shows optimism as exports improve

South Korean Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho, on the screen, speaks at a ministerial meeting of external economic affairs held in Seoul on June 1. [Photo by Yonhap]

South Korean Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho expressed optimism on Friday regarding the improvement of the country’s exports, which have been sluggish for eight months.

During a ministerial meeting of external economic affairs held in Seoul, Choo said that some positive signs are emerging although exports in May continued to decline by double digits due to a fewer working days.

According to government data released on Thursday, the nation’s outbound shipments last month fell by 15.2 percent from a year ago, marking the eighth consecutive month of year-on-year decline. The average daily export value also dropped by 9.3 percent compared with the previous year.

“Exports to China, a major factor that has contributed to the decline in Korea’s outbound shipments, reached their peak this year, while semiconductor exports expanded in volume last month despite a price decline and this led to an improvement in exports compared with April,” Choo said.

Automobiles and batteries, including cathodes, which has played a role as the country’s export pillars this year, have continued to show a rising trend in exports. “As a result, the average daily export value in May exceeded $2.4 billion for the first time since October last year, showing improvement compared from a month earlier,” he said.

However, he cautioned that “global economic slowdown and external uncertainties still persist,” saying that “we will strengthen post-summit meeting measures to attract investment and economic cooperation, broaden the basis of trade, and enhance momentum for economic vitality and export recovery.”

Choo particularly emphasized the need to “further strengthen investment cooperation to accelerate the inflow of investments from the United Arab Emirates into Korea.”

“Through high-level dialogues such as the Korea-UAE Economic Joint Committee, organizing investment roadshows, and designating an investment support channel within KOTRA (Korea Trade-Investment Promotion Agency), we will provide comprehensive support for substantial investment execution,” he said.

The UAE announced plans to invest $30 billion in Korea in January, selecting energy and information communication technology as priority areas for investment cooperation.