Anchor: Finance Minister Hong Nam-ki says the government's current economic growth target of two-point-four percent may fall short this year amid worsening global economic conditions and Japanese trade restrictions.
Celina Yoon has more.

Report: In a televised interview with KBS on Sunday, Finance Minister Hong Nam-ki said it may be difficult to achieve a two-point-four percent growth rate set by the government earlier this year.

[Sound bite: Finance Minister Hong Nam-ki (Korean)]
"In early July the government suggested a two-point-four to two-point-five percent economic growth rate for this year, but global economic conditions have deteriorated since then. On top of Japan's economic retaliation, domestic investment and exports are not showing signs of recovery at this time... It thus seems difficult to hit the two-point-four percent mark. Nonetheless, the government will do all it can to achieve this goal...”

Seoul recently proposed a 513 trillion won budget for next year to prop up the economy, which would pull up the debt to gross domestic product ratio to just under 40 percent. Hong, however, said that South Korea's fiscal soundness is still in good shape compared with other highly-developed economies.

Regarding Japan's recent approval of three shipments of restricted exports to South Korea, Hong said the greenlighting does not remedy the problem.

[Sound bite: Finance Minister Hong Nam-ki (Korean)]
"Our government cannot tolerate a situation in which Japan can arbitrarily approve or disapprove exports... In that sense, I think Japan should immediately withdraw its restrictions. Our government has been considering measures to take in case the situation is not resolved. But dialogue is needed..."

Following Japan's decision to remove South Korea from a shortlist of trusted trade partners, Seoul decided to end an intel-sharing deal with Japan known as the General Security of Military Information Agreement(GSOMIA).

Hong said the move is in South Korea's national interest and dismissed concerns it would pose a problem to the economy, despite Washington’s apparent disappointment with the decision.

[Sound bite: Finance Minister Hong Nam-ki (Korean)]
"We have thoroughly examined any impact the decision might have on the economy. ... We have reviewed whether the U.S. could take negative economic measures on South Korea such as tariffs or those related with foreign exchange rates, but there are no unusual issues and the GSOMIA decision isn't something that can interfere."

He said Seoul is in close consultation with Washington ahead of the U.S. Treasury's soon-to-be-released currency manipulation report. He said the discussions are routine and entirely separate from the GSOMIA decision. 
Celina Yoon, KBS World Radio News.