President Yoon Attends the 59th Trade Day Ceremony
Emphasizes 'Exports' as a Breakthrough in Complex Global Economic Crisis
Yoon: "Pursuing New FTAs with Emerging Markets in the Middle East, Latin America, and Africa"
Government Promises Support through 'Export Strategy Meetings,' 'One-Stop Export and Order Support,' and 'Summit Diplomacy'
Presidential Office Considers Establishing 'Strategic Coordination Secretary' and 'International Legal Secretary' Positions
[Asia Economy Reporters Baek Kyunghwan and Lee Gimin] President Yoon Suk-yeol stated on the 5th, "We will unite all export support capabilities to leap into the top 5 export powers by 2026." President Yoon believes that the global economic crisis must be overcome through exports. To this end, he promised to significantly increase support for export activities and resolve related regulations.
On the morning of the same day, President Yoon attended the '59th Trade Day Commemoration Ceremony' held at COEX, Seoul Trade Center, and said, "Exports have always been a strong pillar of our economy, and exports are the foundation of our economy and the source of jobs."
President Yoon evaluated, "Although there are concerns about a global economic recession due to high inflation, high exchange rates, and high interest rates, this year we have achieved great export results," adding, "Our global export ranking rose from 7th last year to 6th, and we are on track to achieve a record high export performance exceeding $680 billion this year." He also directly mentioned the $30 billion Egypt El-Dabaa nuclear power plant project won under the new government and the $12.4 billion defense export contract with Poland.
He also presented support measures to leap into the top 5 export powers by 2026. President Yoon said, "Along with the Export Strategy Meeting, we will promptly resolve difficulties related to our companies' exports and orders through a one-stop export and order support team," emphasizing, "We will greatly expand support for export activities such as trade finance, marketing, and logistics to help our companies actively enter the global market."
President Yoon's recent consecutive messages to strengthen exports reflect the outlook that the Korean export economy will enter a full-fledged recession next year and consumer sentiment will deteriorate as the global economy enters a downturn. According to the 2023 Export Industry Outlook recently published by the Korea International Trade Association, Korea's trade balance is expected to show a deficit of $13.8 billion next year. Exports have already been declining while imports continue to increase, causing the trade balance to show a red light for eight consecutive months. The cumulative trade deficit from January to November this year reached about $42.6 billion, surpassing the $40 billion mark. This is more than $20 billion higher than the record largest deficit of $20.6 billion recorded in 1996.
Therefore, it can also be interpreted that the top priority of economic policy in 2023 will be focused on overcoming the recession through exports rather than price stability. President Yoon emphasized, "Exports have always been a strong pillar of our economy, and exports are the foundation of our economy and the source of jobs," adding, "Just as we overcame the crises caused by the oil shock in the 1970s and the 2008 global financial crisis through exports, we must find a breakthrough in exports to overcome the complex global economic crisis."
President Yoon promised not only to overcome the simple export crisis but also to actively seek new opportunities through government support for companies' export efforts as well as free trade agreements (FTA) and summit diplomacy. Regarding this, President Yoon emphasized, "We will greatly expand support for export activities such as trade finance, marketing, and logistics to help our companies with export potential actively enter the global market."
He also plans to use summit diplomacy as a platform for Korean companies' overseas expansion. President Yoon explained, "Going forward, summit diplomacy will be thoroughly focused on promoting our companies' exports and overseas expansion, and we will fully utilize Team Korea to actively foster nuclear power, defense, and overseas infrastructure as new leading export industries." For example, Presidential Chief of Staff Kim Dae-gi is scheduled to visit the United Arab Emirates (UAE) around mid-month to reaffirm the 'special strategic partnership' and convey the intention to strengthen it. During the visit, Kim is expected to discuss concrete cooperation plans between the two countries related to nuclear power generation.
He also revealed a blueprint for emerging markets beyond the three major key markets of the United States, China, and the Association of Southeast Asian Nations (ASEAN). In regions such as Egypt, Poland, and Saudi Arabia, where Korea's industrial competitiveness has been confirmed, nuclear power, defense, infrastructure construction, and K-content will be actively fostered as new leading export industries. Korea plans to expand its FTA network by pursuing FTAs with emerging market regions such as the Middle East, Latin America, and Africa.
The Presidential Office is also preparing to establish a new organization to manage export strategies and issues accordingly. The newly created International Legal Secretary under the Presidential Chief of Staff is expected to focus on reviewing export-related laws, including international trade and commerce issues such as the U.S. Inflation Reduction Act (IRA). The Policy Coordination Secretary, under consideration for establishment under the Chief of National Planning, is expected to support government-wide policy communication and coordination centered on nuclear power exports. President Yoon pledged, "The government will always be with trade professionals so that you can work vigorously around the world," and added, "I will also run alongside you at the forefront of exports."
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