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Vice Minister of Finance “Evaluated that there is no problem in the fundamentals of the Korean economy by global IBs and credit rating agencies”

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Bang Ki-seon, First Vice Minister of Strategy and Finance, held a correspondent’s meeting at the Lotte Palace Hotel in New York on the 14th (local time) and predicted that the Korean economy would rebound in the second half of next year. New York =

Bang Ki-seon, 1st Vice Minister of Strategy and Finance, said, “The Korean economy is expected to recover in the second half of the year (July-December), when the effect of China’s reopening is in full swing.”

Vice Minister Bang held a meeting with New York correspondents in New York on the 14th (local time) and said, “From the third quarter (July to September), the economies of major countries such as the United States, China and Europe are expected to recover and the semiconductor economy will improve.” Regarding concerns that there will be negative growth for two consecutive quarters in the first quarter of this year (January to March) following the fourth quarter of last year (October to December), he added, “It will not be a negative growth in the first quarter.”

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Contrary to last month when the International Monetary Fund (IMF) raised its economic growth rate of major countries all at once, saying that “inflation has passed its peak,” Korea lowered it from 2.0% to 1.7%, causing controversy. In this regard, Vice Minister Bang said, “As world trade is declining, all forecasts for this year’s growth rates for countries with high external dependence, including Korea and the Netherlands, have been revised down.” Analyzed.

Vice Minister Bang, who visited New York for meetings with Wall Street investment banks such as BlackRock, Blackstone, and Morgan Stanley, and international credit rating agencies such as Moody’s and Standard & Poor’s (S&P), said that foreign investors were concerned about Korea’s fiscal restructuring efforts and turmoil in the global financial market. He emphasized that he bought a high level of coping ability.

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According to Vice Minister Bang, in particular, Moody’s predicted that “Korea will maintain a potential growth rate of 2% in the mid- to long-term,” and S&P said, “Even if global trade is shrinking, trade in high-tech products such as semiconductor batteries is becoming more important. Korea has strengths in this area.” “International credit rating agencies mentioned that Korea’s credit rating could go up if efforts to strengthen its fiscal soundness as well as labor reforms and responses to demographic changes prevent potential growth rates from falling,” said Vice Minister Bang.

The government recently announced that it would allow foreign financial institutions to participate in the domestic foreign exchange market by loosening the bar on the domestic foreign exchange market, which had been firmly closed for over 70 years. It has also decided to extend the opening hours of the domestic foreign exchange market until 2:00 a.m. from the second half of next year. Regarding such a ‘foreign exchange market advancement plan’, Vice Minister Bang said, “If more market participants with more diverse trading motives increase, the volatility of the foreign exchange market itself may decrease.” It is expected that the possibility of approaching inclusion in the index (MSCI) will increase.”

New York =

Source: Donga

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