South Korean government’s effort to ease China’s economic retaliation against Korea for deploying U.S. Terminal High Altitude Area Defense (THAAD) system through financial ministers’ talks foundered, elevating concerns over export-reliant Korean economy.
There is no firm evidence to prove China’s recent economic actions towards Korean companies are directly linked to Korea’s THAAD deployment but the government will contemplate on ways to “wisely” communicate with China on its retaliatory actions, said Yoo Il-ho, deputy prime minister in charge of economic affairs in a press conference on Friday in the southern German town of Baden-Baden where he was attending the meeting of G20 finance ministers and central bank governors.
China has intensified its retaliatory measures against Korea for THAAD deployment. It has commanded its travel agencies to stop selling trips to South Korea on top of tightening regulations on Korean retail giant Lotte for yielding its land to host the THAAD battery.
Yoo aimed to confront China with its economic retaliation over THAAD through a bilateral talk with his Chinese counterpart Xiao Jie during the G20 finance leaders meeting in Germany but the effort fell through with China’s refusal to convene a conference.
Separately, Yoo kept his conservative stance of refraining against creating a supplementary budget to prevent economic stagnation, citing recent rises in export and facilities investment. The decision will be made after the economic performance over the first three months of this year comes out, said Yoo.
By Cho Si-young
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]