Promoting trade will continue to be on top of the government's policy priorities next year, the commerce ministry said Thursday, as the country seeks to create tens of thousands of jobs based on its growing exports and free trade agreement (FTA) with the United States.
South Korea's trade volume soared to over $1 trillion this year for the first time in the country's history, making the country only the world's ninth nation to breach the mark.
"Next year will be an important year when the country takes its first step toward $2 trillion in trade with new opportunities opening from FTAs with giant markets, such as the United States," the Ministry of Knowledge Economy said in its annual report to the president on its new year objectives.
To help further expand the country's trade, especially exports, the ministry will increase its trade liability insurance for companies entering newly emerging markets to $86.2 billion from the current $78.7 billion, the ministry said.
Also at the heart of the plan is to develop new growth engines, which include a brand new technology still at the very early stage of development that will enable permanent accumulation and storage of electricity, according to Minister of Knowledge Economy Hong Suk-woo.
"It is pretty much a giant battery that can permanently store electricity," he said in a meeting with reporters shortly after his report to the president.
"For example, the country's electricity reserve rate is at about 6 million kilowatts, which means the entire 6 million kilowatts of electricity is being constantly wasted without ever being used. With the new technology, the entire amount will be saved and reserved for later use."
The minister said the globally unprecedented technology is currently expected to take five to six years to develop, but that the government will focus more energy from next year to help develop it at an earlier date.
In addition, the government will strengthen its early warning and control system to monitor and prepare for any dramatic changes in prices of key commodities, including oil, cooper and iron, which could greatly affect the country's exports.
Such measures are also aimed at "preemptively preparing for an economic slowdown in 2012," Vice Minister of Knowledge Economy Yoon Sang-jik told reporters.
The finance ministry earlier slashed its growth outlook for 2012 to 3.7 percent from 4.5 percent, citing what it called "continued uncertainties from the eurozone fiscal debt crisis and a possible global recession."
The economy ministry noted such uncertainties may also affect the country's exports partly by pushing up prices of energy and raw materials.
Korea's exports are expected to grow 19.4 percent from 2010 to $557 billion. The Korea International Trade Association earlier said its exports will likely reach $600.5 billion next year, up 7.8 percent from this year's estimated total.
The ministry's policy objective for 2012 also focuses on creating new jobs.
"Despite the country reaching the $1 trillion trade mark, there remains a question as to what is in it for me or individuals," the vice minister said. "That is why the ministry believes creating and giving jobs to the youth is one of its most important objectives."
First, the ministry will create 20,000 jobs in the research & development sector in addition to 4,000 jobs to be offered by public firms under its wings.
It will also help further develop the country's top 3,000 small and medium-size businesses to increase their combined employment from 800,000 in 2010 to 1.2 million in 2015. (Yonhap)