Choi Sang-mok, acting President and Deputy Prime Minister and Minister of Strategy and Finance, said on the 20th, "How the new U.S. government responds in its early days to promote major policies at a rapid pace will be a 'golden time' that will significantly impact our economy in the future."
Acting Minister Choi noted at a luncheon meeting of national research institute heads held at the Korea Development Institute (KDI) in Sejong City, "The new U.S. government will launch at 2 a.m. tomorrow, Korean time. From now on, this has become an important turning point where 'uncertainty based on promises' turns into 'realistic policy risks.'"
In addition to Acting Minister Choi, the meeting was attended by An Duk-geun, Minister of Trade, Industry and Energy, Bang Gi-seon, Director of the Office for Government Policy Coordination, and Jeong In-kyoo, Head of the Trade Negotiation Bureau. In attendance as national research institute heads were Jo Dong-cheol, President of KDI, Lee Si-wook, President of the Korea Institute for International Economic Policy, Kwon Nam-hoon, President of the Korea Institute for Industrial Economics and Trade, Lee Young, President of the Korea Institute of Public Finance, and Lee Hang-yong, President of the Korea Financial Research Institute.
Acting Minister Choi said, "We must utilize all channels of private, government, and academia to communicate and consult closely with the new U.S. government while maintaining a mutually beneficial perspective to continue the momentum of win-win economic cooperation between Korea and the U.S." He added, "The government will actively support the economic diplomacy toward the U.S. currently being pursued at the private level."
The heads of national research institutes expressed concern, stating, "If the new U.S. government's launch coincides with a sluggish recovery in domestic demand, such as construction, due to economic sentiment dampened by domestic political conditions, the downward pressure on the domestic economy may expand and difficulties for vulnerable groups may deepen."
They continued, "It is crucial to prevent political uncertainty from dampening economic sentiment, delaying the recovery of the domestic economy, and causing disruptions in responding to changes in the external trade environment." They noted that there is a need to consider active macroeconomic policies to address changes in the trade environment and restore livelihoods. Furthermore, they added, "Indiscriminate cash support has limited effects on stimulating domestic demand," and emphasized that "targeted, customized support for vulnerable groups, such as small businesses, is more effective."