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.
He also said the government would work to attract more foreign tourists, with arrivals so far this year at about 40% 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% in 2023 compared with last year. Exports for January and February have already posted a 12% 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.
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% in the fourth quarter of 2022 from the previous
quarter as exports collapsed.
(Reporting by Jihoon Lee and Choonsik Yoo; Editing by Chris
Reese, Sam Holmes and Tom Hogue)
