On October 12, Deputy Prime Minister and Minister of Finance and Economy Lee Hyoung Il chaired the 274th Ministerial Meeting on International Economic Affairs at the Government Complex Seoul. The meeting discussed six agenda items: “Review of External Economic Risks and Policy Responses,” “Status of and Response Plans for Follow-up Negotiations on Services and Investment under the Korea-China Free Trade Agreement (FTA),” “Measures to Enhance the Investment Support Framework for Overseas Investment and Development Projects,” “Second Review of the Implementation of Economic Outcomes from Summit Diplomacy,” “Plan to Develop an Industrial Complex Exclusively for Korean Companies in India,” and “Detailed Implementation Measures for the Global Verified Carbon Market (GVCM).”
* Participants: Deputy Prime Minister and ministers and vice ministers from relevant ministries, including the Ministry of Science and ICT, Ministry of Foreign Affairs, Ministry of Culture, Sports and Tourism, Ministry of Agriculture, Food and Rural Affairs, Ministry of Trade, Industry and Resources, Ministry of Climate, Energy and Environment, Ministry of Land, Infrastructure and Transport, Ministry of SMEs and Startups, and Ministry of Planning and Budget.
Deputy Prime Minister Lee noted that “Korea’s exports have maintained solid momentum, with the current account recording a surplus of $46.11 billion in August, marking the 40th consecutive month of surpluses, demonstrating that the Korean economy has maintained its export competitiveness despite challenging external conditions.” He emphasized, however, that “given the persistently high level of external uncertainty surrounding the Korean economy, it is essential to closely monitor external risks and respond accordingly.”
First, the government reviewed major external economic risks in three areas – trade, supply chains, and the real economy and financial markets – identified through consultations with academia, private-sector exports, and Korean diplomatic missions overseas, and discussed policy responses.
In the area of trade, the government plans to diversify its trade networks and expand trade cooperation with major partner countries in response to risks such as pending trade issues with the United States, strengthened industrial protection measures by the European Union (EU), and deepening trade bloc formation amid the restructuring of the global trading order.
In the area of supply chains, the government will continue to improve supply chain structures to prepare for risks arising from the prolonged conflict in the Middle East and other factors. These efforts will include bolstering domestic production and stockpiles of high-risk economic security items, establishing overseas production capacity, and diversifying import sources. The government also plans to enhance supply chain cooperation with major partner countries, including through summit diplomacy.
In the area of the real economy and financial markets, the government proactively reviewed potential risks affecting both the real economy and financial markets, including persistently high global interest rates, fiscal risks in major economies, and the possibility of a correction in AI investment. In particular, continued efforts will be made to maintain market stability by strengthening its monitoring of fiscal developments in major economies and international financial markets, while closely assessing the domestic spillover effects of changes in external financial conditions.
As part of these efforts to step up trade cooperation, the government will also actively engage in follow-up negotiations on services and investment under the Korea-China FTA. Based on the principle of mutually beneficial market opening, the negotiations will aim to deliver substantive outcomes in areas such as culture and finance, thereby improving conditions for Korean companies seeking to expand overseas.
Next, the government reviewed progress in implementing cooperation initiatives established through summit diplomacy with major partner countries, with the aim of translating these efforts into tangible economic outcomes.
Since the previous review at the 269th Ministerial Meeting on International Economic Affairs in June, the foundations for cooperation established through summit diplomacy have continued to expand, with additional memoranda of understanding (MOUs) on economic cooperation signed with countries in Europe, Mongolia, South America, and Central Asia.
The government will continue to track progress and work with relevant ministries to support the smooth implementation of major cooperation initiatives, ensuring that the outcomes of summit-level cooperation contribute to Korea’s economic prosperity. In particular, efforts to deliver tangible outcomes will be strengthened by systematically managing intergovernmental MOUs according to their expected benefits and addressing challenges arising in the process.
Furthermore, as a follow-up measure to turn the achievements of summit diplomacy into concrete projects, the government plans to pursue key cooperation initiatives, including the development of an industrial complex exclusively for Korean companies in India, to help Korean companies boost exports, secure overseas contracts, and establish a stable local presence. Economic cooperation channels with major partner countries, including the Korea-India Finance Ministers’ Meeting scheduled for November, will also be actively utilized to facilitate the smooth execution of these projects.
Measures to enhance the investment support framework for overseas investment and development projects were also discussed to facilitate Korean companies’ overseas business activities. As the global infrastructure market evolves toward high-value-added investment and development projects, the government plans to shift from the existing project-by-project support framework to joint investment platforms organized by country or region, including through government-to-government cooperation, thereby increasing opportunities for Korean companies to participate in overseas projects.
To this end, the government will establish a new Overseas Construction Strategic Fund totaling KRW 3 trillion, using KRW 1 trillion in government funding as seed capital to mobilize domestic and foreign investment. It will also seek to create a virtuous cycle in which overseas contract awards lead to opportunities for Korean SMEs and middle-market enterprises to supply equipment and materials and participate in long-term maintenance activities, ultimately contributing to regional economic revitalization and domestic job creation.
Lastly, detailed implementation measures for the GVCM have been formulated to carry out the GVCM Roadmap announced in December 2025. The GVCM is an international carbon market being developed in cooperation with the United Nations Framework Convention on Climate Change (UNFCCC) and the Global Green Growth Institute (GGGI) to facilitate global carbon trading by offering greater credibility than existing international carbon markets.
Under the GVCM, the government plans to uissue carbon credits that can be used in both compliance and voluntary markets, vestablish a GVCM governance framework that enables participation by developing countries and other stakeholders, and wutilize blockchain technology for recording and issuing carbon credits.
Deputy Prime Minister Lee highlighted, “The government will work as one economic team to respond steadfastly to external uncertainties and create new growth opportunities.” He added, “We will ensure the smooth implementation of the initiatives discussed today so that they deliver concrete results on the ground.”
Please refer to the attached files.
