The Ministry of Economy and Finance decided to extend the activity period of the autonomous organization 'International Cooperation Ambassador Support Group', established earlier this year to fill the gap in economic diplomacy during the impeachment crisis, by an additional six months. Although normal economic diplomacy became possible after the change of government and cabinet personnel, there is still considerable external uncertainty due to tariffs imposed by the United States, and it was determined that sales diplomacy needs to be strengthened in line with the launch of the new government.
According to the government on the 1st, the Ministry of Economy and Finance has decided to extend the activity period of the International Cooperation Ambassador Support Group, which was scheduled to end on the 21st, until February 20 of next year.
The International Cooperation Ambassador Support Group is an organization established on February 22 of this year to fill the gap in economic diplomacy after the declaration of martial law on December 3 of last year, when both the president and the prime minister were subsequently impeached. At that time, Choi Sang-mok, former deputy prime minister and Minister of Economy and Finance, who assumed the roles of acting president and prime minister, had to juggle four roles, including the head of the Central Disaster and Safety Countermeasures Headquarters, when the Jeju Air incident occurred.
Ultimately, Choi, the former deputy prime minister, was unable to participate in the G20 finance ministers and central bank governors meeting held in South Africa on February 26, failing to engage in overseas diplomatic efforts. This was the first time a Minister of Economy and Finance could not attend the G20 finance ministers meeting since the establishment of the Ministry of Economy and Finance following the revision of the government organization law in 2008.
However, from the government's perspective, despite political uncertainties such as martial law and the impeachment crisis, it needed to convey a message to the international community that there were no problems with the Korean economy. To fill the gap in economic diplomacy, former Financial Services Commission Chairman Choi Jong-ku (25th National Civil Service Examination) and former Minister of Knowledge Economy (now Ministry of Trade, Industry and Energy) Choi Jung-kyung (22nd National Civil Service Examination) were appointed respectively as international financial cooperation ambassadors and international investment cooperation ambassadors. Their terms will end on December 26 of this year and January 5 of next year, respectively.
They took on the role of managing external credibility in the finance and industry sectors. In February and March, they also held overseas presentations about the Korean economy. The purpose of establishing the International Cooperation Ambassador Support Group was to provide practical support for the activities of the two ambassadors.
With the inauguration of Deputy Prime Minister and Minister of Economy and Finance Gu Yoon-cheol, which followed the early presidential election on June 3, a foundation for normalizing economic diplomacy was established. However, the Ministry of Economy and Finance decided to extend the activities of the International Cooperation Ambassador Support Group. This decision was made due to the continued external uncertainties and the increased need to build trust in international markets and to enhance sales diplomacy immediately after the new government's launch.
In fact, foreign funds have continued to flow out since last August, continuing until April of this year. Notably, in April, when the reciprocal tariff measures by the United States were announced, foreign equity funds recorded a net outflow of $9.33 billion, marking the largest figure in over five years. Since May, foreign funds have started to flow back in, showing a gradual recovery.
Previously, the responsibilities for the International Cooperation Ambassador's Investor Relations (IR) related tasks had primarily been managed by the International Finance Division, but moving forward, the International Cooperation Ambassador Support Group plans to strategically operate overseas IR in collaboration with the International Finance Division. The intention is to communicate the new government's economic policy direction and vision more precisely to the international community. Although the IR schedule for the second half of this year has not yet been determined, it is expected to prepare for the IR to be held at the International Monetary Fund (IMF) and World Bank (WB) annual meetings, typically held around October.
A government official noted that, "Given the ongoing uncertainty in external conditions, there is a significant need for IR at the beginning of the new government's term," adding that, "While the focus is fundamentally on sales diplomacy rather than crisis management, the need for crisis management functions will also be maintained as external risks persist."