Finance Minister Lee Hyoung-il said relevant authorities would proactively prepare and implement necessary measures in a timely manner to prevent the stock market from overreacting relative to the country's economic fundamentals.
Lee made the remarks during a meeting of economy-related ministers at the Government Complex Seoul on Friday, where officials discussed the impact of the U.S. midterm elections on the global economy and the government's response, as well as trends in international financial markets following the elections.
Lee said, "While our economy is writing historic firsts and records for the largest scale in the external sector, including surpassing $900 billion in exports and a current account balance exceeding $60 billion, we must prepare in advance for changes and challenges to use current achievements as a stepping stone for a greater leap."
He said, "Given that recent export strength is driven by expanded global AI investment and increased semiconductor demand, we must carefully examine the impact that trends in global AI investment and changes in industrial and trade policies of major countries will have on our economy."
Lee said, "The U.S. midterm elections held on the 3rd are an important turning point for future changes in the global economic and trade environment," adding, "Concerns over strengthened regulations on the AI (artificial intelligence) industry caused a significant drop in the U.S. stock market yesterday, and the possibility of ripple effects on global stock markets cannot be ruled out."
He said that experts forecast that AI investment will continue, and the fundamentals of the nation's economy are more solid than ever before.
The government plans to assess external uncertainties and create new opportunities for cooperation. Lee said, "We will examine changes in industrial support policies requiring legislative and budgetary review by the National Assembly, as well as administrative trade measures such as tariffs and export controls, and proactively check their impact on our companies."
Lee said, "The government will work to stably implement existing Korea-U.S. trade agreements through close cooperation among relevant ministries, while also strengthening communication with the U.S. administration, Congress, and state governments."
Based on this, he said, the government will support stable export and investment conditions for companies and actively explore opportunities for cooperation in strategic industries such as shipbuilding and energy.
"As important as achieving good results is making those results sustainable," he said. "The government will thoroughly prepare for upcoming challenges and further solidify the foundation so that our economy can grow steadily without being shaken by any external environment."
in ECONOMY
