South Korea promises to boost exports, attract tourists

A couple wearing traditional "Hanbok" outfits takes a selfie in the snow at the Gyeongbok Palace, the main royal palace during the Joseon Dynasty and one of South Korea's well known landmarks, in Seoul, South Korea, Jan 26, 2023. (PHOTO / AP)

SEOUL – South Korea's government on Thursday promised to boost exports and attract tourists as the country's statistics agency released January data that showed gloomy prospects for the economy.

Finance Minister Choo Kyung-ho said at a meeting of officials the likelihood of a quick export recovery was limited but that government ministries would do their best to avert a decline in shipments to other markets.

Reflecting the sense of urgency within the government, South Korea's trade minister convened a separate emergency meeting of officials from almost all ministries to press for more exports

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He also said the government would work to attract more foreign tourists, with arrivals so far this year at about 40 percent of pre-COVID levels.

Reflecting the sense of urgency within the government, South Korea's trade minister convened a separate emergency meeting of officials from almost all ministries to press for more exports.

A statement quoted Minister of Trade, Industry and Energy Lee Chang-yang as urging participants to "find realistic ways and put every ounce of energy" to increase exports.

South Korea's official forecast is for exports to drop 4.5 percent in 2023 compared with last year. Exports for January and February have already posted a 12 percent decline over a year earlier.

Statistics Korea data showed on Thursday that Asia's fourth-largest economy could be headed for a recession with the cyclically adjusted coincident index – calculated from several current economic indicators – falling in January for a fourth consecutive month.

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Industrial output rose in January from the previous month but plunged on the year, while retail sales decreased for a third consecutive month, the data showed.

South Korea's trade-reliant economy contracted by an estimated 0.4 percent in the fourth quarter of 2022 from the previous quarter as exports collapsed.