KDI "Korea Must Manage Geopolitical Risks and Strengthen International Cooperation"

The South Korean government has been urged to strengthen geopolitical risk management and international cooperation in preparation for rapidly changing external economic conditions.

On the 30th, Jeong Dae-hee, Head of the Macroeconomic and Financial Policy Research Department at KDI, attended the '2nd KDI National Future Strategy Conference' held at the Korea Chamber of Commerce and Industry in Jung-gu, Seoul, where he presented on structural changes in the external economic environment and response tasks.

Jeong Dae-hee stated, "The external conditions surrounding our economy are undergoing significant changes due to shifts in the international order caused by the US-China strategic competition, advances in digitalization, and strengthened climate response," adding, "The tightening monetary policies implemented by major countries amid the complex crisis triggered by the Ukraine war present a bleak outlook for the global economy this year." He also expressed concern, saying, "Due to the US-China strategic competition, major countries are implementing supply chain restructuring policies for key strategic items and raw materials such as semiconductors, batteries, and rare earths."

Additionally, Jeong warned, "International discussions on climate change, including strengthened climate-related disclosure standards and the EU's introduction of a carbon border adjustment tax, may weaken the external competitiveness of domestic companies."

He advised that a multifaceted approach is necessary to address these issues. Jeong explained, "At the national level, it is necessary to strengthen geopolitical risk management while enhancing international cooperation and exploring industrial transition measures to secure external competitiveness," adding, "We must seek efficient management methods for geopolitical risks and derive supply chain restructuring plans that align with them."

He continued, "In response to the increasing industrial policy support from major countries, digital transformation, and climate policies, we need to explore international cooperation and industrial transition strategies to secure external competitiveness."

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