Choo Kyung-ho: "Semiconductors Are Korea's Lifeblood, Will Benefit from Global Economic Recovery"

"Entering the Phase of Economic Recovery"

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho, who is visiting Marrakech, Morocco to attend the International Monetary Fund (IMF) and World Bank (WB) annual meetings, is answering reporters' questions on the 13th (local time). / Photo by Marrakech Joint Press Corps

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho predicted that Korea will benefit from the global semiconductor market recovery next year. Regarding the recent decision by the International Monetary Fund (IMF) to downgrade Korea's economic outlook, he emphasized that Korea's growth rate remains higher than that of major advanced countries.

While visiting Marrakech, Morocco, to attend the IMF and World Bank (WB) annual meetings, Deputy Prime Minister Choo told reporters on the 13th (local time), “(International organizations) are saying that the overall global semiconductor and ICT market will improve much more than it is now.” He added, “There is a strong possibility that Korea will start to benefit significantly,” and predicted, “I think Korea’s competitive sectors will be very active next year.”

When asked whether the Korean economy is overly dependent on semiconductors, he responded, “Semiconductors are the rice and lifeblood of our industry.” Deputy Prime Minister Choo said, “It is truly fortunate and something to be proud of that Korea has two world-leading semiconductor companies,” and stated, “I believe semiconductors must continue to be at the center of our industry.” He further explained, “While the government and private sector should make policy efforts to ensure other key industries also do well, there is no need to be overly critical of the large share of the semiconductor sector.”

He also expressed confidence in the overall economic recovery. Deputy Prime Minister Choo said, “Semiconductors have almost bottomed out in the third quarter and are showing signs of recovery,” and mentioned, “The spot prices, which can be considered a leading indicator for semiconductors, are rising daily.” He repeatedly emphasized inflation holding steady in the 2-3% range and employment indicators at record highs. Although cautious due to remaining uncertainties, his view is that “the economy has begun to enter a recovery phase.”

Regarding the IMF’s recent adjustment of Korea’s economic growth forecast for next year from 2.4% to 2.2%, he stressed, “There are hardly any countries with better outlooks than Korea among major nations.” Deputy Prime Minister Choo explained, “Growth rates in the low 2% range are rare among countries of significant size,” and added, “Although it has been slightly lowered, Korea’s outlook remains unusually high compared to other countries facing difficulties.” Considering that the growth forecast for major advanced countries is 1.4%, the slightly downgraded Korean forecast is not a poor level.

He also provided an analysis of the potential impact of the recent Israel-Palestine conflict. Deputy Prime Minister Choo said, “Volatility has not yet become visible,” but analyzed, “No one can definitively say whether the geopolitical instability will expand significantly or remain limited.” He added, “The government is also very tense and closely monitoring how this will affect finance, foreign exchange, commodities, and other areas.”

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