<기사>First Vice Minister Gi: "China's Reopening Effect to Boost Korean Economy in Second Half"

[Asia Economy New York=Special Correspondent Joselgina] "The global economic situation is not like Valentine's Day. It will be difficult until the first half of the year."

Bang Gi-seon, the 1st Vice Minister of Strategy and Finance, who visited the United States, held a press briefing with correspondents in Manhattan, New York, on the 14th, Valentine's Day (local time), stating, "Due to interest rate hikes by major countries and increased volatility in the financial sector, difficulties in the real economy are also intensifying from this year."

Vice Minister Bang said, "The Korean economy is unlikely to escape the difficulties of the global economy significantly," and predicted that the sluggishness will continue until the first half of the year. Regarding some views that Korea might record negative growth for two consecutive quarters from the fourth quarter of last year through the first quarter of this year, he said, "It does not seem likely to go negative in the first quarter," but forecasted "a low level is expected."

Additionally, Vice Minister Bang said, "The Korean economy will gradually rebound in the second half of this year due to the global economic recovery," citing as reasons the economic improvement forecasts for the U.S. and Europe in the second half, and the reopening effect of China. He said, "The reopening effect of China is expected to appear by the third quarter," and added, "Moody's, whom I met yesterday, also forecasted a recovery trend in our economy from the second half due to China's reopening." He further added, "There are also expectations that the semiconductor sector's economic outlook will improve from the third quarter."

Vice Minister Bang, who conducted a roundtable with 31 overseas investors representing Wall Street in New York, including BlackRock, Blackstone, and Morgan Stanley, said that questions poured in about the impact of the U.S. economic slowdown, China's reopening, and the Ukraine war on the Korean economy during the meeting.

This investor roundtable was held to assess the perspectives of overseas investors amid growing external uncertainties and to accurately convey the Korean economic situation. Vice Minister Bang said, "(Overseas investors) shared the perception that although global uncertainties are significant, there is no problem with the fundamentals of the Korean economy," and added, "We received high evaluations for Korea's swift response to interest rates and financial market uncertainties."

During his visit to the U.S., Vice Minister Bang plans to visit Washington D.C. after New York. In Washington, he will visit the World Bank (WB) and the Inter-American Development Bank (IDB). He explained, "We are making many efforts regarding export issues," and said, "We see Latin America as a new market. Previously, Korean companies directly discussed expanding the market in Latin America, and we will concretize these plans."