Hong Nam-ki "Difficult to Predict Possibility of US Countervailing Duties on Currency Undervaluation (Update)"

Temporary Postponement of Korea-Russia Deputy Prime Ministers' Meeting and Korea-China Economic Ministers' Meeting Unavoidable
COVID-19 Severely Dampens Consumer Sentiment and Business Activity

[Image source=Yonhap News]

[Asia Economy Reporter Jang Sehee] Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, said, "Since there is no precedent linking exchange rates and countervailing duties, it is difficult to make any assumptions about any possibilities. Therefore, we will respond comprehensively by forming a response task force (TF) and strengthening consultations with the U.S."

At the 212th Foreign Economic Ministers' Meeting and the related ministers' meeting on Japan's export regulations held at the Government Seoul Office on the same day, Deputy Prime Minister Hong stated, "Our country implements foreign exchange policies within the scope of international practices and norms and has closely consulted with the U.S. side through the announcement of exchange rate reports and other occasions."

Earlier, the U.S. decided to implement measures to impose countervailing duties starting from the 6th of next month if it determines that the exchange rate is undervalued due to intervention by the counterpart government, causing damage to U.S. companies.

Deputy Prime Minister Hong further explained, "The global spread of the novel coronavirus infection (COVID-19) has rapidly changed the external economic environment, increasing uncertainty and difficulties." He added, "Domestically, consumer sentiment and corporate activities have significantly contracted, and difficulties across the real economy, including domestic demand, production, and exports, are accumulating and becoming visible."

He predicted, "The increase in entry restrictions on arrivals from Korea may act as a constraint not only on human exchanges but also on economic activities such as trade and investment."

Deputy Prime Minister Hong emphasized, "Since the impact of COVID-19 is immediately reflected in export indicators, order indicators, and investment indicators, we will unprecedentedly promote a positive turnaround in exports this year and expand overseas infrastructure orders and investment cooperation."

He also expressed the need to strengthen global policy coordination in response to the global economic slowdown caused by COVID-19. He said, "In difficult situations, we will carefully review multilateral and bilateral economic cooperation relationships and make special efforts to strategically manage these relationships and maximize national interests."

Additionally, he noted, "The temporary postponement of the Deputy Prime Ministers' meeting between Korea and Russia to promote the 30th anniversary of diplomatic relations originally scheduled for March, as well as the Korea-China Economic Ministers' Meeting, was inevitable," and added, "We will focus on actively promoting this year's New Northern Policy after the COVID-19 situation."

He also stated, "The upcoming export control policy dialogue between the two countries to be held in Seoul must be conducted successfully," and "At this meeting, we strongly urge the Japanese government to take concrete actions and measures to restore regulatory measures to their original state."

Finally, Deputy Prime Minister Hong earnestly requested, "I sincerely ask the National Assembly to promptly pass the supplementary budget within the current extraordinary session," urging the swift processing of the supplementary budget.

This content was produced with the assistance of AI translation services.