South Korea should boost efforts to expand its presence in the world's emerging markets in order to make the next economic leap, a government
minister said Wednesday.
Knowledge Economy Minister Choi Kyung-hwan said in a policy forum that global market balance is shifting from the G-7 nations to the G-20 economies, which encompass the 20 largest industrial and emerging economies.
"Emerging economies represent 3 billion consumers that can help South Korea maintain sustainable growth as it strives to join the ranks of full-fledged industrialized nations," he said.
South Korea has made efforts to gain access to emerging economies in recent years as part of its
strategy to reduce its dependence on fully matured markets in the United States, Europe and Japan.
Trade with developing countries including China accounted for about 60 percent of the total in the first half of this year. Trade volume with China surged 49.4 percent on-year, while trade volume with those in the Association of Southeast Asian Nations and Latin American countries saw an increase of 40-50 percent compared to the first six months of 2009.
On future trade and economic growth prospects, Choi said better-than-expected exports and domestic consumption should permit the country to pull off 5.8 percent growth this year.
Choi, however, said there is a need to carefully follow downside risks such as the financial crisis in some European countries and moves by China and the U.S. to curb economic stimulus programs.