Finance ministry flags external risks as Lee chairs first economic meeting

South Korea's finance ministry said Monday it will keep a close watch on external risks to the economy and continue efforts to steady markets, as Deputy Prime Minister and Finance Minister Lee Hyung-il chaired his first meeting of economy-related ministers.

The 274th meeting of economic ministers, held at the government complex in Seoul, brought together vice ministers and senior officials from the science, foreign, culture, agriculture, industry, climate, land, SME and planning ministries. Lee, who doubles as deputy prime minister, took the chair for the first time since taking office.

"The current account recorded a surplus of $46.11 billion in August, extending the streak to 40 consecutive months," Lee said. "Even amid difficult external conditions, the competitiveness of our exports is being maintained."

He added that external uncertainty surrounding the economy remains high. "We must closely examine external risks and respond to them," he said.

The meeting covered six agenda items, including a review of external economic risks, the status of follow-up negotiations on services and investment under the Korea-China free trade agreement, and a plan to upgrade the support system for overseas investment and development projects.

The government plans to assemble a 3 trillion won ($2.24 billion) overseas construction fund, seeded with 1 trillion won ($747 million) of public money, to draw in domestic and foreign capital. It also intends to shift its overseas investment support from individual projects toward country- and region-level joint investment platforms, responding to a move toward higher-value development-type projects.

On trade, the ministry pointed to stronger US trade measures, tighter EU industrial protections and deepening trade bloc formation, saying it will diversify its trade networks and widen cooperation with major economies. For supply chains, it cited the prolonged Middle East conflict and US-China tensions, and said it will expand domestic production and stockpiles of economic security items, build overseas production capacity and diversify imports.

In the Korea-China FTA follow-up talks, the government said it aims to produce substantive results in areas such as culture and finance on the principle of reciprocal market opening, improving conditions for Korean companies abroad.

The remaining agenda items were a second review of the economic achievements from summit meetings and a plan for a dedicated industrial complex for Korean companies in India, alongside a detailed plan for the Global High-Integrity Carbon Market.

"The government will respond to external uncertainty without wavering as one economic team, and will create new growth opportunities beyond the wave of change," Lee said. "We will prepare without disruption so that the tasks discussed today lead to practical results in the field."

The ministry also listed fiscal risks in major economies and the possibility of adjustments to artificial intelligence investment as potential external risks for Korea to watch, and said the government will preemptively monitor real-economy and financial risks.