206th Ministerial Meeting on International Economic Affairs
Deputy Prime Minister Hong Nam-ki presided over the 206th Ministerial Meeting on International Economic Affairs held on July 8, and discussed how the government would deal with increasing uncertainties over global trade in the second half, along with plans to promote Korean companies' participating in overseas infrastructure projects.
The following is a summary of Deputy Prime Minister Hong's keynote address:
How to deal with uncertainties over global trade
The government will have to deal with the following in the second half.
- Continuing uncertainties over global trade due to the US-China trade tensions and Brexit
- Uncertainties arising due to Japan's export restrictions on high tech materials
- International meetings arranged to be held in the second half, such as APEC summit, IMF annual meetings and Korea-ASEAN special summit, through which we will work with the global community to help the global economy continue to grow and avoid the spread of protectionism
Trade policies for the second half will be based on the following.
- WTO rules of global trade, as well as the G20 Osaka leaders' declaration which emphasizes a free, fair and non-discriminatory trade environment: We will respond to Japan's export restriction by working with international organizations on the issue, focusing on ways to minimize losses incurred to Korean enterprises
- Close monitoring and well-prepared contingency plans, as well as efforts to diversify markets and improve industrial competitiveness, to successfully respond to global uncertainties, such as those over the US-China trade conflicts and Brexit
- Strengthening support for exports and overseas construction projects: Plans to promote exports will be announced in July, and the government will provide companies participating in overseas infrastructure projects with financial support through the country's global plant, infrastructure and smart city (PIS) funds worth 1.5 trillion won. The government will also work to strike an FTA with Malaysia and a Comprehensive Economic Partnership Agreement with Indonesia within this year
- Global digital trade rules: Actively participate in global discussions on digital trade rules, and work on related regulations at home to promote a digital economy
Plans to encourage Korean companies to participate in overseas infrastructure projects
The government will promote participating in overseas infrastructure projects by state-owned enterprises, as well as overseas smart city projects by Korean companies
- Select 10 overseas infrastructure projects for Korea's state-owned enterprises to be involved in and provide with support needed, including financial and regulatory ones
- Provide companies participating in overseas smart city projects with 500 billion won worth of financial support out of the 1.5 trillion won PIS funds, and use other sources of funding, such as donations, loans, export financing and private funds, to support the smart city projects
- Hold a World Smart City Expo in September this year, and help companies with forming a consortium if they want to participate in overseas smart city projects
Source: Ministry of Strategy and Finance