On June 19, Deputy Prime Minister and Minister of Finance and Economy Koo Yun Cheol chaired the 270th Ministerial Meeting on International Economic Affairs at the Government Complex Seoul. During the meeting, participants discussed external economic policies in preparation for the Post-Middle East Conflict era, along with current trade issues and other major external economic matters.
Key messages from Deputy Prime Minister Koo’s remarks are as follows:
[Progress and Future Plans for the Post-Middle East Conflict Era]
The recent agreement between the United States and Iran to conclude a memorandum of understanding on ending the conflict presents Korea with a new set of challenges, as well as opportunities and tasks ahead. The government will move beyond crisis response to seize medium-and long-term opportunities, while further strengthening economic security and enhancing supply chain resilience.
The government will now launch a whole-of-government effort to advance its Post-Middle East conflict external economic policy agenda. Cooperation opportunities arising from the reconstruction and economic transformation of Middle Eastern countries will be proactively pursued, while policy measures will be implemented to address the supply chain risks highlighted once again by the recent developments.
1) Efforts will focus on identifying key projects in the Middle East and securing opportunities for early engagement.
- A kickoff meeting of the Middle East Infrastructure Cooperation Working-Level Task Force (TF) will be convened to develop strategic projects, while government-to-government (G2G) cooperation will be reinforced through high-level delegations to the region and other follow-up measures.
2) An economic security framework to proactively address supply chain risks will be established.
- A pilot operation of a whole-of-government Supply Chain Early Warning System (EWS) will be conducted in the second half of the year to identify potential risks at an early stage. Efforts will also be made to reorganize the list of economic security items.
3) New growth opportunities will be secured through tailored economic cooperation strategies for individual countries.
- Country-specific strategic economic cooperation measures will continue to be developed, while linkages with projects stemming from summit outcomes will be strengthened.
[Status of Trade Agreement Initiatives in Major Economies and Response Measures]
[Update on U.S. Section 301 Investigations and Response Plans]
To maximize the benefits of regional cooperation, efforts will be made to actively advance FTA negotiations with Mongolia, China, Morocco and other partner countries. A mutually complementary economic cooperation platform linking Mongolia’s natural resources with Korea’s technological and industrial capabilities will be established, while reciprocal market opening with China will be promoted, including through cooperation in the K-content sector.
On June 2, the U.S. government announced the findings of its Section 301 investigation concerning forced labor practices in 60 economies. In response, the Korean government will make every effort to preserve the mutually agreed balance of interests between the two countries while ensuring that Korea does not face less favorable outcomes than other major economies. Comprehensive and proactive efforts to address all pending trade issues with the United States will continue to prevent Korean companies from being placed at a disadvantage.
[Reform Measures for Korea’s Knowledge Sharing Program (KSP)]
Over the past two decades, the KSP has established itself as Korea’s flagship economic cooperation initiative, delivering 761 policy consultation projects across 102 partner countries.
The program will now be reformed to move beyond bilateral policy cooperation and serve as a platform for significantly expanding overseas business opportunities for Korean companies. Priority projects will be proactively identified in four key sectors – supply chains, AI, green growth, and culture – while strengthening engagement with the private sector to unlock new opportunities for the Korean economy.
Please refer to the attached files.
