Hong Nam-ki: "The COVID-19 Crisis Is a New Opportunity... Utilizing the K-Quarantine Model as an Asset" (Comprehensive)

Hong Nam-ki, Deputy Prime Minister, Chairs the 213th Ministerial Meeting on External Economic Affairs
Urgent Support of $400 Million EDCF Funds to Developing Countries Within the Year

Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki is delivering opening remarks while presiding over the 213th Ministerial Meeting on External Economic Affairs via video conference between Seoul and Sejong at the Government Complex Seoul in Gwanghwamun, Seoul on the 27th.

[Sejong=Asia Economy Reporters Kim Hyunjung and Jang Sehee] On the 27th, Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, stated that he would use the COVID-19 pandemic as momentum to pioneer new markets and enhance the nation's status. In particular, he plans to actively utilize Korea's globally recognized COVID-19 quarantine experience as the 'K-Quarantine' model as an asset for economic cooperation.

At the 213th Foreign Economic Ministers' Meeting held at the Government Seoul Office in Jongno-gu, Seoul, Hong said in his opening remarks, "For a country like ours with high external dependence, the sharp deterioration of the external economic environment, such as the drastic decline in global trade and restrictions on international mobility due to the COVID-19 pandemic, are very concerning external variables that require proactive management and response."

The government announced plans to strengthen solidarity and cooperation between countries by leveraging international cooperation through K-Quarantine as an opportunity. He emphasized, "We will turn the COVID-19 crisis into a new opportunity for pioneering new markets and enhancing national status. Since over 40 countries have recently requested to share our COVID-19 quarantine experience, we will actively utilize the K-Quarantine model as an asset to deepen economic cooperation." Hong also stressed, "Developing countries not only lack health and medical infrastructure but are also severely impacted by capital outflows and reductions in Official Development Assistance (ODA). Therefore, we will expand comprehensive support such as debt repayment deferrals and ODA provision."

Along with international cooperation through K-Quarantine, Hong Nam-ki presented the key directions for this year's foreign economic policy: ▲strengthening export capabilities ▲enhancing bilateral cooperation ▲preparing for the post-COVID era. He explained, "To resolve difficulties faced by our companies in exports and overseas expansion, we will strengthen support for export promotion such as trade finance and systematically support the discovery, planning, and bidding of large-scale projects by preparing the 'Overseas Infrastructure Contract Activation Plan' by May." He added, "It is necessary to suppress the emergence of new trade risks and strengthen bilateral cooperation with major countries, while accelerating the New Southern and New Northern policies." Furthermore, he said, "We will proactively prepare foreign economic strategies for the post-COVID era, including changes in the global economic order and the restructuring of global value chains (GVC)."

During the meeting, specific support measures for developing countries in response to COVID-19 were discussed. Hong stated, "We will urgently support developing countries' COVID-19 health projects with over $400 million (approximately 493.8 billion KRW) from the Economic Development Cooperation Fund (EDCF) within this year, and defer debt repayments worth $110 million to 26 low-income countries." He also mentioned, "The agenda included increasing the capital of four overseas local subsidiaries of the Export-Import Bank, which had not been increased for over 15 years, from $145 million to $400 million."

Additionally, the government plans to significantly expand the approval scale of New Southern and New Northern ODA to about $7 billion over three years and strengthen strategic support. This is more than double the size compared to the previous three years. Hong explained, "New Southern ODA will link recipient countries' needs with our strengths in information and communication technology, and we will also promote highly visible landmark large-scale ODA projects." Regarding the New Northern region, he said, "We will support package projects focused on recipient countries' preferred demands such as healthcare and climate change."

Moreover, economic cooperation with Russia and Uzbekistan will be a focus this year. On June 6, a video conference between the two countries' deputy prime ministers will be held, prioritizing cooperation in the healthcare sector and concretizing cooperation plans for about 50 investment projects. For Russia, both sides have confirmed 30 joint brand unit projects each and plan to launch a joint investment fund (initially $400 million) within the year. Regarding digital trade, which has gained importance due to COVID-19, Korea will actively participate in the World Trade Organization (WTO) e-commerce negotiations and will begin bilateral digital agreement discussions starting with Singapore.

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