Ministry of Finance and Economy

On July 21, Second Vice Minister of Finance and Economy Huh Chang held a meeting with major Korean exporters – including Samsung Electronics, SK hynix, Hyundai Motor and Kia, HD Korea Shipbuilding & Offshore Engineering (HD KSOE), Hanwha Ocean, and Samsung Heavy Industries – at the Government Complex Seoul. During the meeting, participants reviewed recent developments in foreign exchange (FX) transactions and discussed public-private cooperation measures to help mitigate volatility in the FX market.   Vice Minister Huh noted that the supply-demand imbalance in the FX market has eased somewhat in recent weeks. He observed that the KRW/USD exchange rate, which had climbed to the KRW 1,550 level immediately prior to the government’s meeting with exporters in June, has declined rapidly to the upper KRW 1,400 range, supported by increased FX sales by exporters, forward sales by shipbuilders, and inflows associated with SK hynix’s ADR issuance. He also noted that dollar-buying by offshore investors, which had previously expanded amid expectations of continued weakness in the Korean won, has moderated somewhat.   Vice Minister Huh further emphasized that foreign currency supply and demand conditions are expected to improve further in the second half of the year, underpinned by Korea’s solid economic fundamentals, including continued strength in the semiconductor sector. (The government has revised up its forecast for Korea’s current account surplus in 2026 from USD 135 billion to USD 290 billion, well above the previous record high of USD 123.1 billion posted in 2025)   Vice Minister Huh highlighted that, despite persistent external uncertainties, including the ongoing conflict in the Middle East, the government remains firmly committed to swiftly anchoring market sentiment as they continue to stabilize and has ample policy tools available to maintain market stability. He also called on major exporters, in light of the changing FX market conditions, to play an active role by increasing the conversion of export proceeds and foreign currency deposits into Korean won and facilitating greater inflows of funds held overseas.   The participating companies shared the view that a stable FX market serves as the foundation for reducing uncertainty in the overall business environment and fostering a stable basis for investment and business operations. They also agreed to take a more proactive and responsible role in supporting the government’s efforts to stabilize FX supply and demand, so that the recent improvement in FX supply and demand can be firmly established as a sustained trend of stability in the FX market.   Please refer to the attached files.

On July 20, Deputy Prime Minister and Minister of Finance and Economy Koo Yun Cheol chaired the 271st Ministerial Meeting on International Economic Affairs at the Government Complex Seoul.   Korea’s exports have continued on a solid upward trajectory, reaching a record USD 496.3 billion in the first half of the year. However, external uncertainties persist amid instability in the Middle East and changes in the global trade environment. Recognizing the stable management of the external environment as a key policy priority, the government stated that it will actively leverage the economic cooperation networks built through summit diplomacy and other diplomatic engagements to manage trade risks with major partners and establish new foundations for economic cooperation.   Building on the foundation for economic cooperation established to date, the government discussed key policy tasks to effectively manage external risks, open up new markets, and secure new engines of future growth. At the meeting, participants discussed: (1) recent Korea-U.S. trade issues and the government's response; (2) plans to address key issues at the World Trade Organization (WTO); (3) plans to pursue a plurilateral Green Economy Partnership Agreement (GEPA); (4) the status of and plans for negotiations on a Korea-Bangladesh Comprehensive Economic Partnership Agreement (CEPA); and (5) a strategy to advance the K-AI Package, centered on concessional official development assistance (ODA) loans.   The government will continue to engage in close consultations with the U.S. on the U.S. administration's tariff measures, including Section 301 investigations concerning overcapacity and forced labor, as well as follow-up implementation plans in non-tariff areas, with a view to maintaining stable Korea-U.S. trade relations. Regarding investment in the U.S., the government agreed to proceed with follow-up procedures based on the recently enacted Korea-U.S. Strategic Investment Act and the strategic investment framework, including the Korea-U.S. Strategic Investment Corporation, while carefully assessing the commercial viability of individual projects.   In addition, the government will actively participate in discussions on key trade issues, including the early entry into force of the Investment Facilitation for Development Agreement (IFDA) to advance WTO reform and development, and the continuation of the moratorium on customs duties on electronic transmissions, thereby contributing to enhancing the stability and predictability of the multilateral trading system.   The government also agreed to proactively participate in discussions on emerging trade rules, including the GEPA, in response to climate change measures adopted by major economies that are increasingly serving as new forms of trade protectionism, while laying the groundwork to strengthen the competitiveness of Korea's green industries.   The meeting also discussed ways to conclude the Korea-Bangladesh CEPA. Bangladesh, the world’s eighth most populous country, is a key market in South Asia with strong growth potential, having sustained annual economic growth of over 6 percent since 2000, and serves as a strategic gateway to the broader South Asian market. The conclusion of the Korea-Bangladesh CEPA is expected to expand bilateral economic cooperation beyond its traditional focus on the textile and apparel industries into a wide range of sectors, including infrastructure, manufacturing, digital technologies, and energy.   In particular, the government unveiled a strategy to advance the K-AI Package, centered on concessional ODA loans, with the dual objective of supporting growth in developing countries while expanding overseas opportunities for Korean AI companies and technologies. The K-AI Package is a new integrated ODA model that combines AI solutions, AI data centers, and renewable energy generation facilities with infrastructure projects financed through the Economic Development Cooperation Fund (EDCF).   With a view to developing Korean AI signature project models with strong symbolic value and broad spillover effects and scaling them up across developing countries, the government has prepared a portfolio of projects drawing on Korean technologies and components in seven areas where Korea has particular strengths: water resources, healthcare, energy, transportation, agriculture, culture, and education. These projects will be supported through the coordinated use of a wide range of development cooperation instruments, including the EDCF, the Knowledge Sharing Program (KSP), trust funds and co-financing arrangements with multilateral development banks (MDBs), and development finance.   The government also agreed to continuously expand and refine the portfolio of K-AI Package projects and, leveraging the Global AI Hub being established in Korea, scale up the K-AI Package across developing countries to further strengthen the foundation for the global expansion of Korean AI companies and technologies.   Deputy Prime Minister Koo called on the relevant ministries to “make active use of the foundation for economic cooperation built through summit diplomacy in responding to external uncertainties and, to this end, swiftly implement the MOUs and other agreements concluded on the occasion of summit meetings.” He added, “The government will make every effort to manage external risks in a stable manner, while continuing to open up new markets and build new foundations for cooperation in order to actively support Korean companies in securing global business opportunities.” Please refer to the attached files.   

Statistics Korea released report on the 'Economically active population survey' on 16 July, 2026. The economically active population marked 29.988 million persons in June, which grew 73 thousand persons or 0.2% year-on-year Please refer to the attached PDF.