Why does Finance Minister Lee Hyoung-il want Korea to diversify its trade network?

Lee said diversification is needed to address economic fragmentation, protectionism and trade-related risks while helping Korean businesses enter global markets. He also linked the strategy to maintaining economic stability amid challenging external conditions.

What measures will South Korea take to protect supply chains from Middle East and U.S.-China tensions?

The government plans to increase domestic production, build up stockpiles and establish overseas production capacity. It also intends to use summit-level diplomatic dialogue to develop economic and supply-chain cooperation with major countries.

What other external risks is Finance Minister Lee Hyoung-il monitoring?

Lee cited possible fiscal crises in major countries caused by high interest rates and a possible adjustment in investment by the artificial intelligence industry. He said the government would continue addressing potential external risks while monitoring trade conditions.

Finance minister calls for diversification of trade network amid uncertainties

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Summary

Finance Minister Lee Hyoung-il called for diversifying Korea’s trade network on Monday to address economic fragmentation, protectionism and other external uncertainties. At a meeting with relevant ministers, he highlighted continued strong exports despite challenging conditions. The government plans to expand diplomatic outreach, increase domestic production, build stockpiles and establish overseas production capacity to mitigate supply-chain risks.

Key Facts

Lee said the government would closely monitor trade issues with major countries and pursue summit-level diplomatic dialogue to strengthen economic and supply-chain cooperation.
The government’s supply-chain response addresses prolonged Middle East tensions and disruptions linked to the U.S.-China conflict.
Lee identified possible fiscal crises in major countries amid high interest rates and a potential adjustment in AI industry investment as additional external risks.

By Yonhap

Published Oct 12, 2026 9:14 am KST

Finance Minister Lee Hyoung-il speaks during a meeting on international economic affairs in Seoul, Monday. Yonhap

Finance Minister Lee Hyoung-il on Monday stressed the need to diversify Korea's trade network to address uncertainties, including economic fragmentation and protectionism.

Lee made the remarks during a meeting on international economic affairs with relevant ministers, highlighting Korea's continued strong exports despite challenging external conditions.

"The government will closely monitor trade issues with major countries to address trade-related risks and bolster diplomatic outreach to maintain stability," Lee said.

"By diversifying our trade network, we aim to expand the Korean economy and make every effort to help our businesses enter global markets," he added.

To address prolonged tensions in the Middle East and supply chain disruptions stemming from the U.S.-China conflict, Lee said the government will continue efforts to increase domestic production, build up stockpiles and establish overseas production capacity.

"Through summit-level diplomatic dialogue, we aim to lay the groundwork for economic and supply chain cooperation with major countries and deliver tangible results," Lee said.

The finance minister pledged to address other potential external risks, such as fiscal crises in major countries amid high interest rates and a possible adjustment in investment by the artificial intelligence (AI) industry.

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