[Infostock Daily=Reporter Park Jeong-Do] Sejong University (Chancellor Bae Deok-hyo) said, "Professor Kim Dae-jong of the Department of Business Administration presented a paper titled 'The Impact of Covid-19 on the Korean Economy' at the Korea Management Association Convergence Conference was held in Songdo, Incheon on August 17." The conference was held online using Zoom due to Covid-19.
"With Corona 19, Korea's exports fell 24 percent from a year earlier as of May 2020," Professor Kim said. Compared to May 2018, when there was no U.S.-China trade war, it decreased by 31%. Korea should join the RCEP and the TPP to overcome the crisis by expanding trade."
Korea's total exports in May 2020, when Covid-19 cases at the peak, were $34.9 billion, down 24 percent from $45.7 billion in May 2019. In May 2020, China's exports amounted to $ 10.7 billion, down 2 percent from $11 billion a year earlier. U.S. exports fell 29 percent to $4.6 billion in May 2020 from $6.5 billion a year earlier, indicating a sharp drop in U.S. exports due to Covid-19.
Korea's otal exports to in 2019 were $542.2 billion, down 10.3% from $604.8 billion in 2018; Korea's trade dependence is the world's highest at 82%. If Korean exports increase by $1,000, current account balance increases by an average of $126. The current account balance for 2019 was $76.8 billion, down 30 percent from $110 billion in 2018 due to a decline in total exports to the country.
“The trade war between the U.S. and China in 2019 has reduced the export and current account balance of Korea. The increase in exports in Korea is directly linked to a trade surplus, so the government should make more efforts to expand exports,” Professor Kim said.
South Korea's total exports to China were $136.2 billion in 2019, down 15.9 percent from $162.1 billion in 2018. US exports were $73.3 billion in 2019, up 0.8 percent from $72.7 billion in 2018. While exports to China have fallen sharply in 2019 due to the US-China trade war, US exports have increased slightly. The GDP rankings of 2020 are US $21 trillion, China $16 trillion, Japan $5 trillion, and Korea $2 billion. As of 2018, Japan's total exports are $743.1 billion, while Korea's is $628.4 billion. Korea is expected to surpass Japan's exports withing a few years. Korea's exports per capita are already twice that of Japan.
“Our country should focus on fostering the fourth industrial revolution, including online industry, K Anti-Infection, and artificial intelligence, in response to the Covid-19 crisis,” said Professor Kim Dae-jong. “We need to become a stronger country than Japan with growth in export and pro-business policies,” he emphasized, “The Korean economy can be developed further if the governemnt carries out trade expansion.”
Reporter Park Jeong-Do newface0301@naver.com
