South Korea should reduce currency market volatility and expand trade-related financing in order to help local exporters better cope with toughening overseas business conditions, the Finance Ministry and the central bank said Friday.
The view was shared at a monthly meeting between the ministry and the Bank of Korea on the nation’s macroeconomic policy direction. They have held the monthly meetings since July.
“We shared the view that policy authorities need to work to improve export conditions for companies by reducing volatility in exchange rates and expanding export financing,” they said in a joint statement after the meeting.
Such cooperation is due to tougher export market outlooks next year amid less demand for Korean goods caused by slowing global economic growth, they noted.
They also agreed to continue to cooperate in keeping prices under control next year as inflationary situations remain tough.
“(We) will keep working on structural reforms in order to strengthen the ground for price stability,” they said. “The top priority will also be placed on keeping cost of living under control to help ease suffering among ordinary people from economic slowdown and heightened uncertainty.”
They cited restrained competition caused by monopolistic market structures and less advanced distribution systems as main reasons inflationary pressure remains high.
Meanwhile, both exchanged opinions on the latest financial market conditions and shared the consensus that the markets have stabilized from the recent shock caused by the sudden death of North Korean leader Kim Jong-il. (Yonhap News)