Chief Negotiator: "Mobilizing Public and Private Capabilities to Improve Trade Balance"

The government has recently decided to mobilize all public and private capabilities to restore export vitality amid prolonged export decline and trade deficits.

On the 21st, the Ministry of Trade, Industry and Energy held an export-import trend review meeting with export support organizations such as the Korea Trade-Investment Promotion Agency (KOTRA), Korea Trade Insurance Corporation, Korea International Trade Association, as well as industry associations in semiconductors, automobiles, petroleum, steel, petrochemicals, and the Korea Gas Corporation to discuss measures to restore export momentum.

At the meeting, they reviewed export conditions by region and industry and global energy market trends, while also assessing the impact on exports by industry following the recent bankruptcy of the U.S. Silicon Valley Bank (SVB) and the liquidity crisis at Europe's Credit Suisse (CS).

Presiding over the meeting, An Deok-geun, Director-General for Trade Negotiations at the Ministry of Trade, Industry and Energy, stated, "As of the 20th, exports decreased by 17.4% compared to the previous year amid the high interest rate trend and demand slowdown in major countries, resulting in a trade deficit of $6.3 billion. Due to the global economic situation and the continued decline in semiconductor prices, export conditions are expected to remain challenging for the time being."

Director-General An added, "The government is closely monitoring the spread of volatility in the global financial markets, including the bankruptcy of the U.S. Silicon Valley Bank and the liquidity crisis of the European investment bank Credit Suisse. We will not lower our guard and will concentrate all export support capabilities to ensure that exports turn to positive growth this year, making our best efforts."

Andeok Geun, Head of Trade Negotiations at the Ministry of Trade, Industry and Energy, is delivering opening remarks at the 'Export Situation Review Meeting' held on the 1st at the Korea Trade Insurance Corporation in Jongno-gu, Seoul. Photo by Jinhyung Kang aymsdream@

Industry associations forecast that export sluggishness will continue through the first half of the year, but exports are expected to gradually improve in the second half of this year as the effects of China's reopening emerge and the semiconductor market conditions improve.

These associations requested the government to provide tailored support by industry in logistics, taxation, finance, and marketing, and to actively respond to export risk factors such as the prolonged Russia-Ukraine war, CBAM (Carbon Border Adjustment Mechanism), and GSSA (Global Sustainable Steel Agreement).

Related organizations such as KOTRA and the Korea Trade Insurance Corporation announced that they will execute 70% of KOTRA's overseas marketing budget early in the first half to facilitate smooth export activities for companies, provide trade insurance packages including blanket guarantees and consulting for companies participating in strategic order industries such as nuclear power and defense, and expand customized financial support by process for advanced strategic industries such as semiconductors and batteries.

Director-General An said, "To overcome the complex crisis including high interest rates, export activation is more important than anything else. We plan to continue a strong export drive with all ministries and support organizations centered on the export strategy meetings chaired by the President."