145TH MINISTERIAL MEETING ON INTERNATIONAL ECONOMIC AFFAIRS

GOVERNMENT ANNOUNCES POLICY DIRECTIONS FOR INTERNATIONAL ECONOMIC AFFAIRS IN 2014



Deputy Prime Minister Hyun Oh-seok presided over the 145th Ministerial Meeting on International Economic Affairs and led discussions on the following topics:

- 2014 Global Economic Outlook and Policy Trends in Major Economies
- Policy Directions for International Economic Affairs in 2014
- Multinational Service Agreements
- Follow-up Measures Following Korea-Singapore Summit Talks
- Plans to Launch a Korea Business Association for Overseas Markets 

The following is a summary of the Deputy Prime Minister's keynote speech at the meeting:

2014 Global Economic Outlook: Opportunities and Challenges

The global economy will continue its modest recovery backed by the economic pick-up in advanced countries.

The economic recovery in the US is gaining momentum driven by the private sector, while the eurozone is expected to post positive growth for the first time in three years.

Emerging economies which had led global growth for the past six years are expected to slow down, partly because some emerging economies vulnerable to capital flights will be affected by the US decision to reduce its bond-buying program.

While the recent economic recovery in the US and the eurozone may lead to increase in exports Korea, challenges still lay ahead. Korea needs to brace for large free trading blocs such as the Trans-Pacific Partnership and the Transatlantic Trade and Investment Partnership, and make every effort to prevent increased volatility in the global financial market from spreading to Korea.

The government also needs to address global mid-term agenda, such as climate change and global infrastructure investments for sustainable development.

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Policy Directions for International Economic Affairs in 2014

The government set three basic policy directions for international economic affairs in 2014:

- strengthening Korean company's competitiveness in overseas markets 
- augmenting Korea's presence in the international community
- building strong economic fundamentals

The government will offer various support measures to help Korean companies improve their competitiveness. Support measures may be come in the form of FTAs, export financing support and overseas marketing support. The government will also help businesses develop new export items in areas such as intermediary trade, and e-commerce which can stimulate domestic demand as well.

The government will promote Korea's interest in trade talks by cooperating with the private sector, and contribute to the international community through ODAs and other measures.

The government will strengthen its external risk management system by closely monitoring capital flows in and out of the country and by developing local financial safety measures and promoting the construction of regional and global safety nets.

Please refer to the attached PDF.

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