Finance Minister Choi Sang-mok (left) speaks during the joint press conference at Press Center in Jung-gu, Seoul, Wednesday. On the right is Foreign Minister Cho Tae-yul. (Joint Press Corps via Yonhap)
Finance Minister Choi Sang-mok on Wednesday vowed to restore market credibility amid the ongoing political turmoil, stressing that the indicators that gauge market volatility and economic instability show signs of easing thanks to the swift responses by the government and the country's constitutional and economic systems.
"The budget plan and key tax bills were passed in the National Assembly on Dec. 10, demonstrating that Korean economic policies are moving forward through consultation between the government, the ruling party and opposition parties regardless of the political situation," Choi said.
He made the remarks during a joint press conference with Foreign Minister Cho Tae-yul, held for foreign media to address global concerns sparked by President Yoon Suk Yeol's abrupt and brief declaration of martial law on Dec. 3.
Choi, who oversees South Korea’s economy and finances, underscored that the Korean government’s top priority is upholding external credibility.
“We will continue to operate a 24-hour monitoring system for the financial and foreign exchange markets, enhance incentives for foreign investments, and increase international understanding of Korea’s solid economic fundamentals through various events such as economic briefings,” Choi said.
He also proposed to regularize foreign relations ministerial meetings between the economic and foreign affairs ministries, as well as expand and reorganize the industrial competitiveness ministerial meeting into a forum for public-private collaboration.
Regarding the rising volatility of the Korean won against the greenback, he said, "While volatility has increased due to political uncertainty and the global strength of the dollar, we expect it to ease as the situation stabilizes." He added forex authorities would proactively respond if volatility became excessive.
Choi also pledged to implement next year’s 673 trillion won ($468 billion) budget starting Jan. 1, with the government's economic policy direction for the new year, typically announced around this time, revealed before year-end.
Choi reassured that South Korea will demonstrate strong determination to overcome the ongoing instability.
"South Korea has faced a similar path of political differences in the past. However, during such challenging times, our constitutional, economic and contingency response systems have functioned effectively to resolve political uncertainties and minimize economic impact," he said. "We assure you that Korea will get back on track soon supported by our robust and resilient economic system."
Meanwhile, Foreign Minister Cho acknowledged political turmoil triggered by Yoon's martial law declaration "hindered" the South Korean government's communication with the Trump team for the past two weeks.
"That said, it is undeniable that these events have somewhat weakened the political momentum of previously established communication channels, and restoring that momentum will take time," Cho said. "Moreover, there are inherent limitations due to the suspension of the president, who plays a direct role in these communications."
However, Cho emphasized that under the interim leadership of Acting President Han Duck-soo, who also serves as prime minister, Seoul is "working to sustain the momentum of the previously established network to ensure there are no setbacks in policy coordination and communication with President-elect Trump’s camp and the incoming administration."
Speaking at the news conference, Cho also outlined that Seoul will "proactively" prepare for the potential resumption of nuclear talks between the United States and North Korea under a second Trump administration, including refining its road map and plans for North Korean issues in anticipation of such developments.
Cho noted that US President-elect Donald Trump's appointment of a special envoy tasked with handling North Korea signals "(that) the North Korean nuclear issue has not been excluded from the list of priority tasks" and "his commitment to addressing the North Korean nuclear issue seriously since taking office."
Trump named Richard Grenell, a former US ambassador to Germany and acting director of national intelligence during his first term, as his Presidential Envoy for Special Missions, which includes North Korean affairs, on Saturday.
"Since the appointment of the special envoy is being interpreted as evidence that President-elect Trump is not neglecting the North Korean nuclear issue, I believe we need to respond more proactively to this."
"As for the North Korean nuclear issue, we will prepare plans and road maps before the incoming US administration takes office, which will help us brace for the possibility of the US negotiating with North Korea," Cho said.
Cho also emphasized that South Korea has not turned away from negotiations with North Korea. Instead, it was North Korea that unequivocally rejected dialogue and negotiations, resulting in the breakdown of inter-Korean communication.
"However, if an opportunity for negotiations with North Korea, including on the nuclear issue, arises in the future, we are open to all such opportunities."
When asked about the potential end of Russia's war against Ukraine, Cho remarked, "Significant time will likely be required."
"Considering the highly complex nature of the Ukraine conflict, which has unfolded over the past two to three years, I believe that even with President-elect Trump's strong commitment, bringing the war to a swift conclusion will be far from easy."
Cho stated that it is premature to define South Korea's response strategy to the Ukraine war under a second Trump administration. This strategy will consider ongoing military cooperation between Russia and North Korea, including North Korean troop deployments, battlefield developments and international efforts to end the war.
"Based on a comprehensive assessment of these dynamics, we plan to formulate and implement our response strategy accordingly."
Related Stories
MOST POPULAR