South Korea will capitalize on free trade pacts it has signed with countries such as China and strengthen itself against sudden external shocks, the country’s top economic policymaker said Tuesday.
In the first meeting this year of foreign economy-related ministers, finance minister Choi Kyung-hwan also outlined the need to help local companies expand into untapped overseas markets and to better meet global obligations in such areas as global warming and development assistance.
The official, who chaired the meeting in Seoul, pressed the urgency of speedily ratifying the free trade agreement reached with China last year, as well as those inked with Vietnam and New Zealand. His comments were released by the finance ministry here.
In the case of the FTA with China, the government will establish a comprehensive utilization plan to make it possible for companies to take full advantage of the agreement once the pact is approved by lawmakers, Choi said.
The official on several occasions had stressed that the FTA with Beijing will not only help trade, but fuel inbound investment from abroad.
Choi, who doubles as deputy prime minister for economic policies, added that the country needs to take steps to ensure that the signing of so-called mega FTAs, such as the U.S.-led Trans-Pacific Partnership, does not compromise the national interest.
“There is a need to take a more active part in the TPP talks,” he said.
Such measures are needed because there are lingering uncertainties in the global economy, despite forecasts that the U.S. economy will grow at a brisk pace this year, said Choi. On the other hand, sluggish growth predicted for Japan, Europe and emerging economies could adversely affect overall trade.
Other efforts this year include reaching open trade pacts with partners in the Middle East, Latin America and Central Asia.
The government is planning to announce a new policy roadmap next month to help expand corporate presence in emerging markets.
Besides these areas, the official said the country’s economy must become stronger and better insulated to cope with any shocks coming from outside.
Macro-fiscal health must be maintained along with around-the-clock monitoring of overseas risks so the country can pro-actively react to external threats and developments, he said.
To help local firms make inroads into overseas markets, Choi said more attention needs to be placed on tackling climate change.
A comprehensive overseas ODA (official development assistance) plan will be announced in February that can help South Korean firms win projects that use funds provided by the aid program. (Yonhap)
