Nam Hyun-woo has worked as a staff writer at The Korea Times since 2013, mostly covering business and politics. He currently belongs to the Business Desk where he covers topics such as emerging tech, AI, ICT and Korea's chaebol community. Prior to joining the team, he was the paper's correspondent for the presidential office of Korea during the Yoon Suk Yeol and Moon Jae-in administrations.
President pledges all-out efforts to bolster exports
President Yoon Suk Yeol speaks during an export strategy meeting at Yeongbingwan guesthouse in Jongno District, Seoul, Thursday. Yonhap
By Nam Hyun-woo
Gov't sets annual export target at $683.6 billion
By Nam Hyun-woo
President Yoon Suk Yeol, Thursday, highlighted the importance of expanding exports and assisting startups, saying they are the only way to overcome the comprehensive economic difficulties that Korea faces.
To this end, Yoon stressed that the country should find a breakthrough by tapping into the export potential of the food and cultural content industries. He highlighted their role in helping Korea overcome the negative export outlook for this year.
“The only way to overcome high interest rates and other comprehensive economic crises is to expand exports and nurture startups,” Yoon said during an export strategy meeting.
“Despite difficulties last year, we achieved a record high $683.6 billion (888 trillion won) in exports, but experts are forecasting a 4.5-percent contraction this year citing a global economic slowdown and a downtrend in semiconductor prices,” Yoon said. “However, we have to set up a higher target and save no effort to accomplish that.”
During the meeting, Yoon set Korea's 2023 export target as $685 billion, up 0.2 percent from a year earlier.
This is seen as a bold target because many experts have predicted that the country's exports will contract this year. The Korea Development Institute anticipates Korea's exports this year will amount to $650 billion, down 4.9 percent from a year earlier, while the Korea International Trade Association forecasts $662.4 billion, down 3.1 percent during the same period.
Trade deficits are also fueling concerns. Last year, Korea suffered a $47.2 billion trade deficit, which was the largest in 14 years. This is an alarming sign for Asia's fourth-largest economy, because exports have been the backbone of its economic growth.
“Although we have witnessed a surplus in the current account balance, the fundamental factor affecting the vitality of the real economy is the trade balance,” Yoon said. “If exports slow down and the trade deficit continues, Korea, which is highly dependent on external factors, will face serious difficulties.”
A container ship arrives at a pier in Busan Port, Tuesday. President Yoon Suk Yeol seeks to expand Korea's exports. Yonhap
In defiance of negative forecasts, Yoon pledged the government's all-out support of 12 industries including nuclear power, defense, overseas construction, food, cultural content and biopharmaceuticals.
During the meeting, Yoon emphasized the export potential of cultural content industries, saying Korean cultural content is “creating enormous economic value.” He asked the government to undertake full efforts to support integrating cultural content with fashion, tourism, food, info-tech and other industries.
As part of the plan, the government will organize a 1 trillion won policy financing program to address the chronic cash shortage that domestic content firms are facing. It will also support forays into new markets in the Middle East and Europe.
The government will also emphasize assisting food exports. The presidential office said it plans to expand food exports to $20 billion in 2027 from $12 billion last year. If so, food exports will account for 13 percent of the country's total exports.
“I said earlier that I will be the No. 1 salesperson for the country's exports,” Yoon said. “I will place the economy and exports at the center of every diplomatic effort.”