Trade Minister Ahn Duk-geun held a meeting on August 24 to assess South Korea’s exports situation amid the rising exchange rate and concerns of exports slowdown, and discussed recent global economic changes and countermeasures for second-half exports vitalization.

Minister Ahn remarked that exports’ continuous rise for 21 consecutive months leading up to July was somewhat offset by the greater surge of energy imports, resulting in a trade deficit. As of June, exports growth shrank to single digit, with even semiconductor shipments dropping down in pace.

He stated that “exports conditions are not favorable at the moment, with China and other major economies’ growth forecast being slashed and global inflation dampening demand” for key items like chips and steel.

Accordingly, the Ministry will strive to strengthen Korea’s exporting industries through measures that can upscale the nation’s core industries, foster promising sectors and stabilize the supply chain in the long run, while supporting businesses in trade, logistics and overseas marketing in the shorter term.

The trade chief added that a “comprehensive strategy plan will be announced for bolstering Korea’s exports competitiveness by end of August, one that encompasses areas for industrial competitiveness and energy imports stabilization.”

Moreover, he encouraged sector-specific associations to actively express their input to be incorporated into exports policy programs for practicality and effectiveness. Forecasts given per sector, including chips, steel, machinery, cars and secondary batteries, are overall pessimistic towards the possibility of a high exports growth rate in the second half.

Institutions like the Korea Trade-Investment Promotion Agency (KOTRA), Korea Trade Insurance Corporation (K-Sure) and the Korea International Trade Association (KITA) also attended the meeting and relayed their commitment to extend strong assistance to domestic exporters in terms of trade financing and marketing.

Meanwhile, Minister Ahn also called for exporters’ participation in the forming and dispatch of trade delegations for trade cooperation efforts with the Middle East and Eastern European partners to create substantial trade synergy across emerging markets.