South Korea plans to announce a package of measures next month to counter a slowdown in its exports, a main driver of the country’s economic growth, officials said Sunday.
The move comes as overseas shipments lost further ground last month. Asia’s fourth-largest economy reported an 8.1 percent on-year fall in outbound shipments in April, worsening from a 4.3 percent on-year drop in March.
Officials said the finance ministry, together with other government ministries and state think tanks, has started a review of whether there is any problem with the competitiveness of the nation’s exports.
“After a comprehensive checkup of the reasons for sluggish exports, the government plans to come up with a set of mid- and long-term steps around the end of June to rejuvenate overseas shipments,” a finance ministry official said.
Citing a drop in international oil prices and a slowdown in major economies, the government has so far dealt with sinking exports with short-term measures.
On Friday, Finance Minister Choi Kyung-hwan said South Korea should ramp up efforts to find new overseas markets in order to counter slumping exports that could sap growth.
The drop in crude oil prices is the main reason for weak exports, but the government is currently examining if the country is facing systemic problems in its trade,” he said. “External developments are not favorable at present.”
Choi, who doubles as deputy prime minister for economic affairs, also called on local companies to work with the government to use various open trade pacts to expand into new markets.
Early last week, South Korea inked a free trade agreement with Vietnam, the 15th of its kind signed by Seoul, which already has open trading arrangements with the United States and the European Union. (Yonhap)
