Choo Kyung-ho: "Trade Balance Will Gradually Improve After January"

2023 Fiscal, Economic, and Financial Affairs Meeting

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho is delivering opening remarks at the '2023 Fiscal, Economic, and Financial Officers Meeting' held at the aT Center in Seocho-gu, Seoul on the 1st.

[Asia Economy Sejong=Reporter Song Seungseop] Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho said, "The trade balance will gradually improve as seasonal factors diminish after January and the effects of China's reopening are reflected with a time lag."

On the 1st, Deputy Prime Minister Choo Kyung-ho held the '2023 Fiscal, Economic, and Financial Officers Meeting' at the aT Center in Seocho-gu, Seoul, to strengthen cooperation with overseas fiscal, economic, and financial officers.

Deputy Prime Minister Choo stated, "The export-import trends announced today for January indicate that our economy is still in the midst of a severe cold wave. The decline in exports that began in October last year has continued for four consecutive months, and above all, the January trade deficit widened significantly to a historic first triple-digit figure of $12.69 billion," he evaluated. He further analyzed, "The expansion of the January trade deficit was largely influenced by seasonal factors such as increased energy imports during the winter season, while the sharp drop in semiconductor export prices and disruptions in China's economic activities exacerbated the deterioration of the trade balance."

Deputy Prime Minister Choo mentioned that policy efforts will be concentrated on driving exports and orders to improve the trade balance. He explained, "We will more than double the export financing support target for defense, nuclear power, and infrastructure from 9.3 trillion won last year to 20 trillion won plus alpha this year. We will introduce a rapid trade guarantee system for companies participating in defense and nuclear power projects, and expand defense hub trade offices by more than 50%, from 20 last year to 31."

He continued, "We will actively support enhancing the export competitiveness of key industries by passing the amendment to the Restriction of Special Taxation Act, which includes expanding the tax credit rate for investments in national strategic technologies such as semiconductors, at the February extraordinary session of the National Assembly." He praised, "Semiconductors are the lifeblood that drives all industries and the top contributor to maintaining South Korea's current account surplus." He also asserted, "It is necessary to fully recognize that expanding support for national strategic technologies such as semiconductors is a national survival strategy that guarantees South Korea's continuous prosperity."

Additionally, Deputy Prime Minister Choo said, "We will promptly activate cooperation channels and improve domestic systems to ensure that the attraction of $30 billion from the UAE sovereign wealth fund and the signing of MOUs worth $6.1 billion plus alpha lead to follow-up investment expansion effects."