Trade Deficit Again in June... Government to Discuss Export Promotion Measures on the 3rd

The 2nd Emergency Economic Deputy Ministerial Meeting

Bang Gi-seon, First Vice Minister of the Ministry of Economy and Finance, is presiding over the Emergency Economic Vice Ministers' Meeting held at the Government Seoul Office Building on July 1, 2022. Photo by Yonhap News

[Asia Economy Sejong=Reporter Son Seon-hee] Last month, the trade balance recorded a deficit again, marking three consecutive months of deficits, prompting the government to discuss export revitalization measures on the 3rd.

Bang Gi-seon, First Vice Minister of the Ministry of Economy and Finance, chaired an emergency economic vice ministerial meeting at the Government Seoul Office on the 1st and stated, "We are reviewing support measures that need to be implemented immediately to resolve export difficulties and revitalize exports in the second half of the year," adding, "We plan to discuss this at the emergency economic ministers' meeting this Sunday (the 3rd)." He also added, "We will actively seek mid- to long-term policy directions to fundamentally and structurally enhance export competitiveness so that exports can continue to operate as the engine of our economic growth."

Regarding last month's export performance, which recorded a deficit of $2.47 billion, Vice Minister Bang analyzed, "Although the overall export growth rate was in single digits due to reduced working days and the Cargo Solidarity strike, the average daily exports excluding the impact of working days showed double-digit growth in June, continuing the upward trend despite difficult external conditions. The trade deficit widened somewhat compared to last month, but exports rapidly recovered in late June, significantly reducing the deficit." He continued, "We will make our best efforts with related ministries to ensure that this export recovery trend is maintained and expanded without disruption in the second half of the year."

Ahead of the announcement of the 'June Consumer Price Index' next week, Vice Minister Bang forecasted, "Following May (5.4%), the consumer price inflation rate is expected to rise further in June," and added, "Inflationary pressures are expected to persist for a considerable period." The June consumer price inflation rate is projected to rise to the 6% range.

The government will implement a reduction in the statutory maximum limit of the fuel tax starting today. Regarding this, Vice Minister Bang emphasized, "We will strengthen cooperation with the industry, including oil refiners, centered on the Ministry of Trade, Industry and Energy to ensure that the effect of the fuel tax reduction is immediately reflected in market prices." He stressed, "Especially at oil refiners' directly operated gas stations, prices will be lowered immediately upon implementation today, and at privately operated gas stations, we will prepare to ensure no disruption in supply through an emergency transportation plan so that the reduced volume can be supplied as soon as possible."

He also stated, "From the first week of July, a joint petroleum market inspection team consisting of the Ministry of Trade, Industry and Energy, the Fair Trade Commission, and the National Tax Service will conduct nationwide on-site inspections of gas stations more than twice a week, focusing on illegal activities such as regional gas station price collusion taking advantage of rising prices and distribution of counterfeit fuel, and strict measures will be taken." He added, "We also plan to conduct focused inspections on supply and quality targeting oil refiners and will respond firmly if violations are detected."

Meanwhile, at the meeting today, the government discussed the 'Cyber 100,000 Talent Development Plan' related to the increasingly emphasized importance of 'cybersecurity.' Over the next five years, the plan aims to nurture a total of 100,000 talents in the cybersecurity field, including supplying 40,000 new personnel and providing capacity-building education for 60,000 current workers.