Finance minister urges allies to fine-tune conflicts of economic interests
Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho delivers an opening speech at Korea Times Forum, titled “New Challenges for Korea-U.S. Alliance,” at the Korea Chamber of Commerce and Industry (KCCI) building in Seoul, Wednesday. Korea Times photo by Choi Won-suk
By Yi Whan-woo
Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho stressed the importance of fine-tuning conflicts of economic interests between Korea and the United States, as their alliance is broadening to the economic sphere that increasingly impacts national security across the world.
Speaking at the Korea Times Forum, titled “New Challenges for Korea-U.S. Alliance,” Wednesday, Choo underlined the importance of cooperation ― largely in four areas ― to upgrade the decades-long security-oriented alliance so as to jointly safeguard the economy as well.
The four areas were, trade and the supply chain, next generation technologies such as chips, secondary batteries and bioscience, currency markets plus climate change and other global challenges.
“The Korea-U.S. alliance is becoming more important than ever, with the global economy facing a tough time as if it is at war,” Choo said in his opening speech at the forum held at the Korea Chamber of Commerce and Industry (KCCI) building in Seoul.
The turbulent global economy, Choo noted, is triggered by the COVID-19 pandemic and worsened by the war in Ukraine, China-Taiwan tensions, high inflation due to pandemic-driven stimulus policies, a rapid fall in liquidity, and climate change that is at the brink of “disastrous” tipping points.
He then pointed out some measures taken by the Joe Biden administration to cope with the aforementioned challenges, highlighting that they are becoming sources of discord in trade relations between Korea and the U.S.
The measures include the Inflation Reduction Act (IRA), the Chips and Science Act and the Fab 4, which are intended to contain China yet also restrict Korean businesses' operations as well.
“Accordingly, Korea is tasked with tuning directions of relevant polices with the U.S. to ensure the shared spirit of reciprocity, which is not hurt while keeping in tandem with the U.S. goal to tackle the climate crisis and foster cutting-edge technologies with like-minded countries,” he said.
Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho, right, walks into a conference hall with Korea Times Chairman Seung Myung-ho to attend the Korea Times Forum, titled “New Challenges for Korea-U.S. Alliance,” at the Korea Chamber of Commerce and Industry (KCCI) in Seoul, Wednesday. Korea Times photo by Shim Hyun-chul
Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho, right in front row, sits side by side by with American Chamber of Commerce in Korea (AMCHAM) Chairman and CEO James Kim, left in front row, as they applaud during the Korea Times Forum, titled “New Challenges for Korea-U.S. Alliance,” at the Korea Chamber of Commerce and Industry (KCCI) in Seoul, Wednesday. Korea Times photo by Shim Hyun-chul
Taking such conditions into account, the finance minister said the Korea Times Forum is “timely and meaningful” to discuss the forward-looking relations between the Korea and the U.S.
Choo said the two sides should build on the 10th anniversary of the Korea-U.S free trade agreement (FTA) this year as a part of efforts to enhance economic security.
On the multilateral level, the finance minister viewed the Indo-Pacific Economic Framework (IPEF), a U.S.-led trade initiative among 14 countries in the region, as being critical to counter disputed supply and set new examples on trade.
Choo said both Korea and the U.S. boast a “world class level” of competence when it comes to chips, secondary batteries and bioscience, which the U.S. strategically nurtures as growth engines.
“The two countries can capitalize on each other's competence, bolstering cooperation in investment, research and human resource exchange, for them to take a lead together in the global market,” he explained.
Regarding Korea's currency market, Cho dismissed concerns over volatility by addressing global credit rating agencies assessing Korea's economic fundamentals as stable as compared to the past.
He still said that joint efforts with the U.S. will be critical for the currency market to “work in an orderly fashion” and that the two sides will continue monitoring the market together and expand related cooperation.
The finance minister underlined that Korea has been a responsible member concerning climate change, noting that it is the host of the U.N. Green Climate Fund (GCF) and pledged to donate $30 million to Pandemic Preparedness Financial Intermediary Fund (FIF).