Seoul: The recent memorandum of understanding (MOU) between Washington and Tehran aimed at ending their conflict presents both opportunities and challenges for South Korea, the finance minister said Friday, noting the government will implement post-conflict economic policies.
According to Yonhap News Agency, Finance Minister Koo Yun-cheol made the remark during a ministerial meeting on international economic affairs, stating the government will seek to create long-term opportunities while strengthening its economic security and enhancing supply chain resilience. The minister emphasized the importance of securing cooperation with Middle Eastern nations on reconstruction and fiscal improvements, while addressing risks in the global supply chain highlighted by the recent conflict.
Minister Koo also touched on Washington's proposed tariffs on dozens of countries, including South Korea, over their alleged failure to enforce import bans on products made with forced labor. He mentioned that Seoul will take proactive steps to seek a balance that serves the interests of both countries. The Office of the U.S. Trade Representative (USTR) has proposed imposing tariffs of 10 percent or 12.5 percent on products from 60 trading partners for these alleged failures.
Koo further added that by thoroughly addressing overall trade-related agendas with the U.S., efforts will be made to ensure South Korean companies are not placed at a disadvantage. In a separate meeting on economy-related affairs, he noted that external uncertainties appear to be easing following the U.S.-Iran MOU, although the fallout is still affecting the South Korean economy.
The finance minister stressed the government's commitment to closely monitoring developments in the Middle East and supporting the safe and prompt passage of South Korean ships through the Strait of Hormuz. He acknowledged the ongoing impact of the Middle East conflict, including slowing employment, consumer price hikes, and volatility in the foreign exchange market and key rates, and assured that the government will make every effort to ease the burden on people's livelihoods.