Bang Gi-seon, Deputy Minister of Economy and Finance, "Current Account Balance, Foundation for Stable Surplus Established"

'The 17th Emergency Economic Deputy Ministers' Meeting'

Bang Gi-seon, Vice Minister of Strategy and Finance, is delivering a welcoming speech at the '17th Emergency Economic Vice Ministers' Meeting' held on the 9th at the Government Seoul Office in Jongno-gu, Seoul.

[Asia Economy Sejong=Reporter Song Seungseop] Bang Gi-seon, First Vice Minister of Strategy and Finance, said on the 9th, “Compared to the past when trade deficits directly led to current account deficits, our external transaction structure has improved,” adding, “The foundation has been laid for the current account balance, which is the core of external soundness, to maintain a stable surplus without significant fluctuations despite external shocks.”

On this day, the First Vice Minister held the ‘17th Emergency Economic Vice Ministers’ Meeting’ at the Government Seoul Office and stated, “Last year’s current account balance significantly exceeded initial forecasts thanks to structural improvements in the income account and the expansion of overseas production exports, despite a considerable trade deficit.”

The current account balance is a statistic that sums up goods, services, investment-related interest, and dividends with foreign countries. The trade balance is the difference between export and import amounts based on customs clearance of goods. In January, the trade balance recorded a deficit of $12.69 billion, the worst monthly figure, continuing a deficit streak for over 11 consecutive months for the first time in 26 years. On the other hand, the current account balance recorded a surplus of $29.83 billion last year.

Vice Minister Bang said, “However, it is clear that we cannot lower our guard as exports have been continuously declining recently and the trade deficit is expanding,” and explained, “We will do our best to ensure a swift rebound in exports by discussing export and investment trends and support plans by sector and item under each ministry’s jurisdiction, addressing current issues and difficulties, and checking performance.”

On this day, the ‘1st Export Investment Responsible Officers’ Meeting,’ the ‘2nd Meeting of the Task Force (TF) for Improving Economic Penal Provisions,’ and the ‘4th Meeting of the Task Force (TF) for Responding to the Population Crisis’ were also held together. The Export Investment Responsible Officers’ Meeting was organized following the decision on the 3rd to appoint responsible officers in each ministry to revitalize exports and investment. The meeting will set next year’s export targets for major sectors and items and discuss future ministry-specific inspection plans.

Vice Minister Bang continued, “In August last year, the Economic Penal Provisions Improvement TF announced 32 improvement tasks in the first phase and is proceeding with related legislative procedures,” adding, “We will steadily improve economic penal provisions that excessively restrict normal business activities of companies and do not meet global standards.”

Regarding the implementation status of the 2023 Economic Policy Direction, he said, “Among about 400 tasks currently underway, most are progressing normally except for some legislative tasks with schedule adjustments,” and mentioned, “We check the progress of each task monthly to ensure that tangible results are produced for the public.” He further added, “We will verify whether the policy content and effects are well communicated to the public and promptly prepare additional measures if necessary.”

Vice Minister Bang stated, “The government is determined to overcome the current difficulties facing our economy and focus its capabilities to maximize opportunities for recovery,” and urged, “We request the National Assembly to promptly process key bills such as increasing tax credit rates for investments including semiconductors and legislating fiscal rules to ensure the sustainability of medium- to long-term finances during the February extraordinary session.”

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