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| Trade Minister Ahn Duk-geun speaks with reporters at the Ronald Reagan Washington National Airport in Washington, D.C., Dec. 4. Yonhap |
By Baek Byung-yeul
Korea should diversify its export destinations for more sustainable economic growth, Trade Minister Ahn Duk-geun said Monday, adding that the country is heavily dependent on exports at a time when large economic regions such as the United States, China and Europe are using on-shoring strategies to add value their own economies.
"The problem is that the biggest topical question so far is the answer to what Korea will do when the world becomes more protectionist, for example, the U.S., the EU and China separate their respective supply chains. What will Korea do? What is Korea's strategy?" Ahn said during a meeting with reporters in Sejong City.
Arguing that Korea's economic structure is not able to take steps similar to those of economic powerhouses, Ahn said, "The key point of Korea's trade policy is to eventually diversify its supply chain around the world so that Korean companies can use the global platform well and make good use of the diversified ecosystem."
He also stressed that Korea will play bigger roles in economy-related international organizations such as the World Trade Organization (WTO) and the OECD so as to expand Korea's presence in the global trade scene.
"There is a part where we have to go and play a role in commerce. Korea plays a big role in the first round of IPEF (Indo-Pacific Economic Framework) negotiations. The second round of negotiations in February will create a significant structure, and Korea will play the largest role as much as possible. We will also play a role in the WTO and the OECD. The message will create a platform that allows global innovative companies to gather in Korea," he said.
When asked about a solution to the fact that many economic institutions see Korea's economic growth rate at around 1 percent in 2023, the trade minister said that policy support would be provided in the direction of increasing exports in the service sector.
"The government is preparing support measures for export in the service sector. Korea is excessively focused on manufacturing. Except for China, there is no country with a low role or low competitiveness in trade and production structure in the service sector in an economy of the size of Korea. We have to expand this sector," he said.
He also diagnosed that the biggest reason for Korea's gloomy economic outlook is not that Korea's competitiveness is deteriorating, but that the global economy is not doing well, adding that this is why the country is trying to advance more into the Middle East market.
