Yoon: "Macroeconomic situation has become a bit more difficult... Cannot be assured about global inflation factors"

Sharp Rise in Exchange Rates and Widening International Trade Deficit
"We Will Respond to Prevent Financial Crisis and Increased Hardship for Livelihoods"

[Image source=Yonhap News]

[Asia Economy Reporter Ki-min Lee] President Yoon Suk-yeol stated on the 24th, "The domestic and international macroeconomic situation is developing to be somewhat more difficult than in May," adding, "Global factor inflation remains a concern due to Russia's reduction of gas supplies to Europe."

At the 2nd Macro-Financial Situation Review Meeting held at the Korea Agro-Fisheries & Food Trade Corporation (aT) Center in Yangjae-dong, Seoul, President Yoon assessed the recent global economic situation in this manner and added, "The possibility of a slowdown is increasing."

This was the first time in three months since May 13, shortly after his inauguration, that President Yoon presided over the Macro-Financial Situation Review Meeting. The meeting was reportedly decided late in the afternoon the previous day due to the severe domestic and international economic conditions, such as the recent sharp rise in exchange rates and the widening trade deficit. In particular, concerns over Russia's gas supply suspension directly contributed to the natural gas price soaring more than tenfold.

Regarding this, President Yoon mentioned, "The widening trade deficit is increasing due to rising import prices caused by the increase in raw material prices," and added, "Although international oil and grain prices have somewhat stabilized, global inflation remains a concern due to Russia's reduction of gas supplies to Europe." He continued, "Major countries' interest rate hikes in response, increased uncertainty, and greater volatility are raising the possibility of a global economic slowdown."

President Yoon emphasized, "We will thoroughly inspect and respond to ensure that a financial crisis does not recur and that difficulties in people's livelihoods do not worsen," and stressed, "Based on the discussions, we will carefully manage immediate issues and risk countermeasures such as financial and foreign exchange market stability, export expansion, trade balance improvement, prices, and livelihood stabilization."

Attendees at the meeting included Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho, Financial Services Commission Chairman Kim Joo-hyun, Senior Secretary for Economic Affairs Choi Sang-mok, as well as Choi Jae-young, Director of the International Finance Center, Cho Sang-hyun, Director of the Korea Institute for International Trade and Commerce, and Shin Yong-sang, Head of the Financial Risk Research Center at the Korea Institute of Finance.

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