South Korea should seek to resuscitate its economic vitality and plot a policy of long-term sustainable growth to counter mounting global financial uncertainty, the top economic policymaker said Wednesday.

Minister of Strategy and Finance Bahk Jae-wan told a weekly meeting of economic officials that anti-austerity election results in European countries such as Greece have fueled financial market jitters.

“To effectively cope with such developments, the country must take steps to ensure long-term economy vitality and take a route that can guarantee sustainable growth,” Bahk said. “There is also a need to develop a ‘policy mix’ to monitor external developments and take countermeasures to reduce fallout.”
Bahk said Seoul should try to find new export markets if necessary.

Europe accounts for roughly 10 percent of South Korea’s exports and is an important investor in the domestic economy. It is also a major trading partner with China, which buys large amounts of South Korean-made components then sells the finished goods overseas.

Exports remain the country’s main growth engine accounting for roughly half the country’s economy. South Korea’s exports contracted 4.8 percent on-year in April to $46.19 billion, mainly due to sluggish global economic growth triggered in part by European fiscal woes. 

(Yonhap News)