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Minister of Strategy and Finance Kim Dong-yeon (right) and Bank of Korea Governor Lee Ju-yeol shake hands before starting a meeting on July 16 2018, Seoul, July 16 (Yonhap) – Key economic and monetary decision-makers in South Korea decided Monday to take preventive measures against a number of risk factors they face The country, as the growing trade dispute between the United States and China and the slow creation of jobs, said Monday the Ministry of Strategy and Finance. At a meeting early in the day, the Minister of Strategy and Finance, Kim Dong-yeon, and the Governor of the Bank of Korea (BOK, acronym in English) Lee Ju-yeol He also promised to implement a monetary and fiscal policy to help the fourth Asian economy overcome these adverse conditions, according to the ministry. "They agreed to work closely for the policy mix and strengthen surveillance The ministry said in a statement that the meeting between Kim and Lee is the seventh round of political dialogues since Kim took office In June of last year, other senior officials from the Ministry and the BOK also attended the meeting. Kim said that they were studying the potential downside risks and "They would discuss trade disputes and other economic issues." Governor Lee also said that the global trade war could have a huge impact on South Korea's exports, investment, and employment. The two major world economies were in conflict over trade, which led to global repercussions.In their latest bomb attack on China, the United States introduced, last week, an additional list of customs duties of $ 200 billion on Chinese products . Chinese valued at $ 34 billion and Beijing threatened to fight back with equivalent tariffs on US products. USA UU and China are South Korea's main trading partners. The meeting between Kim and Lee also took place while the South Korean economy is also facing headwinds, such as the slowdown in investment in facilities and Similarly, the weak creation Jobs is one of the tricky issues for policymakers in the country because the number of jobs created revolves around the disappointing figure of 100,000 per month for five consecutive months. The BOK adjusted its previous growth forecast for this year, reducing it by 0.1 percentage point to 2.9%, citing growing national and international economic uncertainties. By 2019, the BOK also reduced its estimate from its previous forecast of 0.1 percentage point to 2.8%. Meanwhile, the minister expressed his profession for the increase of the minimum wage for 2019. Last week, the Minimum Wage Committee – a panel made up of representatives of the union, employers and from the general public – decided to raise the minimum wage to 8,350 won ($ 7, 37) per hour in 2019, an increase of 10.9% over this year C is the first time in history that the national minimum wage exceeds the 8,000 won mark. After the meeting, the minister told reporters that a double-digit increase could be a burden to the economy because it could affect the job market. The Moon Jae-in administration increased the minimum wage this year for all workers by 16.4%, up to 7,530 won ($ 6.6), compared to 6,470 won ( $ 5.7) in 2017, after setting the goal of increasing the hourly payment to, at least, 10,000 won ($ 8.8) by 2020. The Government says that the increase has finally led to economic growth led by income and a reduction in the wage gap between employees, but critics say this increase harms basic jobs and slows down the pace of change. local economy, in addition to a reduction in employment. In addition, Kim said that the economy does not deviate significantly from its potential growth trajectory, but that the Gobie does not pay attention to downside risks. (FIN) [ad_2]Source link Tags BOK Degradation Finance Governor measures Minister Preventive promise risks Related Articles |
