South Korea's Ministry of Economy and Finance outlined a coordinated government response to external economic risks at the 274th Meeting of Ministers on International Economic Affairs. The measures address changes in the global trade order, supply chain disruption and financial market risks, while supporting overseas expansion by Korean companies. The ministry noted that exports remain firm and that the current account recorded a USD 46.11 billion surplus in August, extending its surplus run to 40 months. On trade, the government will increase outreach to manage issues involving major partners, including trade bloc formation, matters involving the U.S. and stronger European Union industrial protection measures. It will also diversify trade networks and pursue practical outcomes in culture, finance and other sectors through follow up negotiations on services and investment under the free trade agreement with China. A new KRW 3 trillion overseas construction strategic fund will support Korean companies in securing foreign contracts, alongside expanded package projects covering development, construction and maintenance. Supply chain measures will focus on domestic production, larger stockpiles, overseas production capacity and diversified imports for economic security items. The government will also monitor risks from the prolonged Middle East war, U.S.-China tensions, sustained high global interest rates, fiscal pressures in major economies and a possible adjustment in artificial intelligence investment, with continued reviews of real economy and financial risks and measures to stabilize markets.

Original source