Anchor: South Korea's Finance Minister Hong Nam-ki has positively assessed the country’s economic resilience. Speaking to investors in New York, he explained that external soundness, solid fiscal health and balanced industrial structures demonstrate the resiliency of the economy despite some recent negative indicators.
Celina Yoon has more.

Report: Finance Minister Hong Nam-ki delivered his evaluation of the South Korean economy at an investor relations(IR) session held in New York on Thursday.

He dismissed concerns of deflation, pointing out that domestic prices fell in some 20 to 30 percent of items rather than across the board, as would be expected in sustained periods of deflation.

[Sound bite: Finance Minister Hong Nam-ki (Korean)]
"I don't think deflation is an appropriate term to describe the South Korean economy since there is very limited chance of the country falling into a recession or seeing asset prices plunge."

Hong’s evaluation follows the International Monetary Fund’s recent announcement that it slashed its growth outlook for South Korea to two percent this year from its previous forecast of two-point-six percent. The Bank of Korea also trimmed its key rate to one-point-25 percent in a bid to navigate worsening economic conditions.

Regarding sluggish exports, Hong pointed to a drop in global chip prices, and said he expects exports to improve as the semiconductor market recovers next year.

The minister was also sanguine about the economy overall, saying its foundation of external soundness, solid fiscal health and balanced industry provide resiliency.

He pointed out that South Korea's ratio of debt to gross domestic product(GDP) is below 40 percent, considerably lower than other Organization for Economic Cooperation and Development member states.

Hong also cited South Korea’s abundant foreign exchange reserves and a balanced industry portfolio, with semiconductor, automobile, steel and chemical manufacturing minimizing negative impacts from global uncertainties.

Hong noted, however, that the trade conflict with Japan is a risk factor. 

[Sound bite: Finance Minister Hong Nam-ki (Korean)]
"We have been continuously demanding that the discriminant export restrictions should be lifted since they go against the declaration by the G20 Finance Ministers' Meeting and G20 Summit."

He said Japan's export curbs on Seoul will hurt South Korean manufacturers and Japanese exporters alike, nullifying what was previously a win-win relationship between the two neighboring economies.

Around 100 figures from investment banks and asset management companies participated in the IR session, including Jim Quigley, executive vice-chair at Bank of America-Merrill Lynch, Sjoerd Leenart, global head of corporate banking at JP Morgan and Blackstone COO Jonathan Gray.
Celina Yoon, KBS World Radio News.