SEOUL, KOREA - The South Korean government held a crisis-management meeting on December 21 to discuss economic outlooks after North Korea announced that Kim Jong-il had passed away on Monday.
Domestic and overseas financial markets were somewhat rattled by the announcement of the North Korean leader’s death, but quickly stabilized.
Presided by Minister of Strategy and Finance Park Jae-wan, the meeting discussed strategies for nurturing globally-oriented companies, the condition of the country’s free-trade zones and plans to attract international educational and medical institutions to those zones.
Park added that besides Kim’s death, a number of foreign-related issues such as the government’s additional sanctions on Iran have recently had a big effect on the economy but there has been no hoarding of staples and supplies and no change in the everyday routines of citizens, suggesting that South Korean society has become more mature.
Moreover, the Minister called for development of R&D strategies to help Korean companies become more globally oriented, emphasizing the need to improve the country’s infrastructure. In Korea, small and mid-sized companies remain vulnerable due to the dominance of chaebols, or giant Korean conglomerates.
Park also said that the government is examining Korea’s free trade zones and the plans to develop them in the future, particularly ways to attract foreign medical and educational institutions. The minister requested that ministries strive for the success of those zones.
Finally, Park requested each Ministry to continue devising plans for taking advantage of the recently ratified Korea-US FTA so it may provide new momentum for overcoming economic difficulties and achieving growth.
