Vice Minister Ki Jae: "Manufacturing Sustained the Economy During the COVID-19 Crisis... A Jewel of the Korean Economy"

On the 31st, via Facebook post: "Manufacturing drives macroeconomic recovery... Urgent need to reassess manufacturing"

Kim Yong-beom, 1st Vice Minister of Strategy and Finance [Photo by Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Kim Yongbeom, the 1st Vice Minister of the Ministry of Economy and Finance, emphasized regarding the COVID-19 pandemic, "Manufacturing, which is sustaining our economy in the midst of the crisis, is now truly a hero and rightfully called the jewel of the Korean economy."

On the 31st, Vice Minister Kim wrote on Facebook under the title "The True Hero of the Korean Economy, Manufacturing," stating, "The third-quarter real indicators announced this week showed a recovery exceeding expectations, providing some relief and hope to the people exhausted by the COVID-19 crisis."

Vice Minister Kim explained, "Looking at the third-quarter GDP results, manufacturing grew by 7.6% compared to the previous quarter, marking the largest increase in 11 years," adding, "The growth contribution of manufacturing in the third quarter was 1.8 percentage points. Considering that the GDP growth rate was 1.9%, manufacturing accounted for more than 90% of the total growth."

He also emphasized, "The role of manufacturing is decisive even when looking at the September industrial activity trends," stating, "During the crisis phase, our manufacturing companies continued production activities without wavering, which led to a significant improvement in exports and drove the recovery of macroeconomic indicators."

Vice Minister Kim said, "The phenomenon of manufacturing acting as the backbone of the economy during the COVID-19 crisis is confirmed worldwide. Manufacturing powerhouses such as Germany and Taiwan are relatively performing well economically," and added, "A reevaluation of manufacturing is urgently needed."

He further stated, "Just as the United States, which was a representative service-oriented economy after the global financial crisis, has actively pursued a manufacturing renaissance policy, we too must actively use this crisis as an opportunity for a leap forward." He added, "We need to strengthen the core of manufacturing through reshoring (bringing manufacturing back to the domestic market), fostering the materials, parts, and equipment industries, and innovate manufacturing by applying digital and green new deals to existing industries."