Korea to Ink Free Trade Agreements
with 12 more countries by 2022
In a statement on Thursday, South Korea's
trade ministry announced its plans to sign Free Trade Agreements (FTAs) with 12
additional countries by 2022. With its FTAs, the Republic, which is also the 4th
largest economy in Asia, will be able to make its footprint in more than 90 per
cent of the world’s collective Gross Domestic Product.
As stated by the country’s Trade Minister,
Yoo Myung-hee at a gathering of officials from various trade establishments, “Amid
growing protectionism around the globe, and growing tension between the United
States and China, South Korea will focus efforts on penetrating new markets”.
South Korea is already having in operation or
practice, 18 sets of FTAs with 58 nations across the world as of in November. It
is now thinking of making moves to grow the network to span across a thumping 70
countries, with the close of 2022.
Once these are implemented, South Korea will
get the advantage of a free trade network that will sprawl across most of the world’s
composite GDP.
Yoo specifically stressed that these types of
initiatives are necessary to deal with the uncertain atmosphere that is
building up in the global business landscape, caused by the mounting tensions between China and the US. Both these
economic superpowers make up for almost 40 per cent of South Korea's exports.
Previously this month, South Korea signed the
RCEP (Regional Comprehensive Economic Partnership), laying the ground for stable
trade with a trading coalition that forms one-third of the world economy.
RCEP consists of all the 10 members of ASEAN (Association
of Southeast Asian Nations) and its dialogue associates.
Yoo also added that South Korea also plans to
diversify its liaisons with Southeast Asian countries in the approaching ASEAN summit
which is scheduled to happen later this month.
Korea's Net Investment Abroad Up in Q3
South Korea's net international investment saw a considerable growth since three months earlier in the third
quarter, affected by a gradual rise of overseas investment by South Koreans and
an extensive fall in the investment by foreign investors in the country. This
was indicated by the central bank data on Wednesday.
Korea’s net foreign investment
was placed at US$502.6 billion at September-end, higher by $40.4 billion three
months earlier, as per initial figures from the Bank of Korea (BOK).
The unsettled amount of
the country’s investment abroad reached $1,639.5 billion, exceeding $18.1
billion across the mentioned period and the unpaid amount of investment
overseas summed up to $1,136.9 billion, less by $22.3 billion.
The BOK majorly attached the
fall in foreign investment to a severe slump in stock investment that slid by $20.1
billion since the three-months period at the close of September.
The country's net overseas
assets in debt also kept on increasing in the third quarter.
Its overall external
assets gained $4.8 billion to $938.0 billion over the cited period, while its
external debt came to $458.2 billion, down $3.9 billion.
The short-term external
debt reached $133.8 billion, lesser by $6.2 billion, making the short-term
external debt ratio, 33.2 percent.
BOK Chief for Bank’s Preventive, Realistic Steps
On Monday, the head of
South Korea's central bank necessitated preemptive initiatives for dynamic
steps to gear up the bank for the changes to come. However, he also emphasized that
such steps must be adequately effective to get the cooperation of the
population as a whole, besides the bank staff.
Addressing a two-year
session of top BOK officials, Lee Ju-yeol, Bank of Korea (BOK) Gov., said: “Changes
and innovations are becoming much faster and more complicated than ever before
in each sector of our society”.
He emphasized on active
and preventive steps to counter such quick developments, for the BOK to retain
its competitiveness, as well as the people's faith, he added.
Lee's address surfaced
with the BOK progressing to frame a new policy plan of action to commemorate the
70th anniversary of its establishment in June 2020.
In the meeting, Lee also
said that for affecting real evolution and new features, it is important to invent
precise and action plans that do what they are meant to do, in agreement with
all the members. This is in line with the extracts from his speech shared with
the general public, by the BOK.
“We must frequently check
to make sure our organization, its system, work culture and the way it operates
conform to the rapidly changing environment and the people's expectations.”
