Financing minister states effect of U.S.-China trade dispute on Korea might increase

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홍남기 “미중갈등 심화 … 경제영향 이전보다 심각할 가능성”

Trade stress in between China and the U.S. appear to be reaching brand-new heights … following Google’s choice on Huawei.
And South Korea is keeping a close eye on the scenario to lessen the unfavorable effect on the regional economy.
Kim Hyesung reports.
Financing Minister Hong Nam-ki is alerting the intensifying trade stress in between the U.S. and China might impact the South Korean economy more seriously than formerly believed.
The world’s 2 biggest economies are South Korea’s leading 2 trading partners and together represent almost 40 percent of the nation’s overall exports.
Considered that near 80 percent of Seoul’s exports to Beijing are intermediary products, the Korea International Trade Association states the U.S.-China trade tariffs, consisting of Trump Administration’s 25 percent tariff trek on two-hundred billion U.S. dollars worth of Chinese products this month might take down South Korea’s total exports by zero-point-14 percent or more.
Minister Hong stated in spite of South Korea’s record foreign currency reserves, volatility in the regional monetary market and won-dollar currency exchange rate have actually increased.
He likewise swore to keep track of markets carefully and take needed countermeasures if needed.
The benchmark KOSPI has actually been up to a four-month low and the Korean won has actually damaged to almost 1,200 won versus the greenback.
To assist exporters, the financing minister once again gotten in touch with the National Assembly to pass the additional budget plan expense as quickly as possible, that includes over 900 million dollars in trade associated funding and export marketing.
He included the federal government will continue to diversify South Korea’s trading partners and develop procedures to support regional exporters in durable goods and services by June.
Concerning the Trump Administration’s statement to postpone its tariff choice on imported automobiles for 6 months, he stated the federal government will continue all outreach efforts and assist reinforce the competitiveness of South Korean car manufacturers.
Kim Hyesung, Arirang News.

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