The government of South Korea pledged on Thursday to increase exports and draw visitors as the nation's statistics office unveiled January data that indicated bleak economic outlook.
At a meeting of officials, Finance Minister Choo Kyung-ho stated that although there was little chance of a speedy export rebound, government ministries would work hard to prevent a drop in exports to foreign markets.
Also, he stated that the government would try to increase international visitor arrivals, which have so far this year been only about 40% of pre-COVID levels.
The South Korean commerce minister called a separate emergency conference of representatives from practically all departments to push for additional exports, reflecting the sense of urgency within the government.
As per Lee Chang-yang, the minister of trade, industry, and energy, urged attendees to "discover realistic approaches and exert every ounce of energy" into boosting exports.
Based in South Korea's official prediction, exports will decline 4.5% from 2022 levels in 2023. Exports for January and February already showed a 12% decrease from the same period last year.
The cyclically adjusted coincident index, which is derived from a number of current economic indicators, fell for a fourth consecutive month in January, according to Statistics Korea data released , suggesting that Asia's fourth-largest economy may be headed for a recession.
Retail sales fell for a third straight month in January, while industrial output increased from the prior month but down year over year, according to the figures.As exports fell, South Korea's trade-dependent GDP shrank by an estimated 0.4% in the fourth quarter of 2022 compared to the previous quarter.