On November 6, Deputy Prime Minister and Minister of Finance and Economy Lee Hyoung Il chaired the 276th Ministerial Meeting on International Economic Affairs at the Government Complex Seoul to discuss the impact of the U.S. midterm elections on Korea’s external economic environment and policy responses, as well as developments in global financial markets following the elections.
Deputy Prime Minister Lee noted that the Korean economy has recently achieved record-high performance in its external sector, including exports and the current account balance. However, he emphasized the need to prepare in advance for upcoming changes and challenges to translate these achievements into sustainable growth.
In particular, he stressed the importance of closely examining the potential impact of trends in AI investment and changes in industrial and trade policies in major economies on Korea, given that the recent strong export performance has been driven by expanding global investment in artificial intelligence (AI) and rising semiconductor demand.
He also noted that U.S. stocks fell sharply the previous day amid concerns over tighter regulations on the AI industry following the U.S. midterm elections held on November 3, adding that potential spillover effects on global stock markets could not be ruled out.
Nevertheless, he pointed out that experts expect AI investment to continue. The government will closely monitor global financial market conditions and work with relevant authorities to proactively prepare and implement necessary measures in a timely manner to prevent Korea’s stock market from overreacting despite the country’s strong economic fundamentals.
He further stated that the U.S. is expected to maintain its core policy priorities, including strengthening domestic industries and supply chains, even after the midterm elections. The government, however, plans to proactively assess and respond to potential changes in the conditions for implementing major U.S. policies resulting from the election outcome.
Meanwhile, the government plans to ensure the stable implementation of existing Korea-U.S. trade agreements through close interagency cooperation and strengthen communication with the U.S. administration, Congress and state governments to support favorable conditions for Korean companies’ exports and investment. It will also actively seek opportunities for economic cooperation in strategic industries, including shipbuilding and energy.
Finally, Deputy Prime Minister Lee emphasized that making economic achievements sustainable is just as important as achieving them in the first place. He reaffirmed the government’s commitment to further strengthening the foundations for stable economic growth by proactively responding to changes in the external environment.
Please refer to the attached files.
