South Korea to Provide Support for Exports as Recovery Appears: Finance Minister

9 Aug 2023

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By Kang Yoon-seung

SEOUL, Aug. 9 (Yonhap) — South Korea’s finance minister declared Wednesday that the nation will not hold back in offering assistance to exports, which are showing indications of recovery.

“Despite some month-to-month volatility, exports are demonstrating signs of improvement,” Finance Minister Choo Kyung-ho said during a gathering with economy-related ministers.

South Korea’s exports dropped for the tenth consecutive month in July, mainly due to weak demand for semiconductors, but the country reported a trade surplus for the second consecutive month.

Asia’s fourth largest economy also posted a current account surplus for the second month in a row in June, due to a trade surplus and increased dividend payments from abroad, the Bank of Korea’s data revealed earlier this week.

To further support exports, the government said it plans to remove regulations at bonded warehouses, allowing firms to assemble, repair and package products to increase their value.

South Korea will also relax regulations for the construction of new bonded warehouses by local companies, it added.

“We must remain vigilant, considering the ongoing global economic uncertainties, including the delayed effect of China’s reopening,” the finance minister said.

Choo also mentioned that the nation is maintaining stable jobs data.

“Due to the harsh weather conditions and heavy rains, the number of those employed in the construction and agricultural sectors declined,” Choo said. “But the job market is exhibiting a stable trend as the unemployment rate also reached a record low.”