Chairman Kim In-ho of the Korea International Trade Association (KITA). (Photo: KITA)

Chairman Kim In-ho of the Korea International Trade Association (KITA) said Korea would likely see exports turn around and rise next year.

KITA Chairman Kim made the remarks during a meeting with reporters on Nov. 28 prior to the 53rd anniversary of Trade Day at COEX in southeastern Seoul on Dec. 5. “The economies of the emerging countries are forecast to get better on top of a rise in international crude oil prices.” he said. 

But Kim noted that the widening of uncertainties stemming from the expansion of protectionist moves coupled with policy changes of the new U.S. administration and a rise in U.S. interest rates, China’s reinforced restructuring and rough-sailing in negotiations of the Brexit, the UK’s decision to leave the EU, will weigh down on the recovery of the global economy.

“Korea finds it difficult to achieve the goal of posting $1 trillion trade next year. It is not easy for the global economy to attain a recovery, and chances are high that such countries as the United States will come up with new protectionist moves.” he said. 

“Our economy is not only one with an economic structure sensitive to the course of the global economy, but also the mainstay industries’ portion of the national economy is too high.” he said. 

On the same day, KITA released a report showing that the nation’s annual trade is predicted to stand at $950 billion next year, falling short of the $1 trillion trade for the third straight year since 2015.

“The quantitative growth in the $1 trillion trade is important, but adhering to the symbolic goal will end up with short-term policies, which could result in the stagnation of growth.” Kim said. He stressed that the nation should focus on reforms that can make a difference on their own. The good news is that the nation is lowering its dependence on China for exports, expanding consumer goods through the Hallyu brand and focusing on value-added exports coupled with SMEs and mid-size firms’ rising export capabilities, Kim said. He went on to say that Korea needs to expand such strengths. 

The KITA chairman warned against the National Assembly’s controversial move to raise corporate taxes, which will lead to Korean companies’ relocation of their plants abroad, dealing a blow to the people.

SK Group Chairman Chey Tae-won, who appeared on a parliamentary hearing on the so-called Choi Soon-sil scandal on Dec. 6, said he would favor a raise in corporate tax rather than paying political quasi-taxes. Replying to a question by Rep. Hah Tae-kyung of the Saenuri Party: “Why would Korean companies submit to the government’s inappropriate demands, citing Apple’s refusal to cooperate with the U.S. government to unlock a smartphone used by a terrorist?” Chairman Chey made a point to that effect. Rep. Hah said political quasi-taxes companies were coerced in paying amount to about 6.4 trillion won. He was asked: “What’s your view on a proposal to discard quaxi-taxes instead of raising a corporate tax?” Chairman Chey said, “I’ll agree with that if it is the case that you has said, gentleman, but I wonder whether that would result in such a outcome.” On the other hand, LG Group Chairman said, “I do not agree with a raise in corporate tax. “

Regarding a project to overhaul the Korea Trade Center the KITA is now implementing, KITA Chairman Kim said, Shinsegae Property, a logistics company, has been commissioned to operate COEX Mall, and it is expected to boost sales.

WTC Seoul will be inaugurated as an integrated asset management company charged with leasing the Korea Trade Center and managing the facilities, he said. KITA is implementing a project to reshape COEX and City Airport Logis & Travel, Korea (CALT) into companies specializing in MICE and airport limousine & logistics, respectively.