AMCHAM Hosts a Special Meeting with Suh Young Kyung, Monetary Policy Board member of the Bank of Korea
To discuss strategies for strengthening Korea-U.S. economic cooperation, exploring the
economic outlook and major risk factors and understanding Bank of Korea’s monetary policy
The event was organized to help global companies operating in Korea understand the monetary policy of the Bank of Korea so that they may develop appropriate strategies. At this event, Dr. Suh met with 50 U.S. and Korean corporate representatives, including members of the AMCHAM Board of Governors, to share her insights on the global and Korean economy for 2023 as well as key risk factors.
In his welcoming remarks, AMCHAM Chairman & CEO James Kim said, “As we commemorate the 70th anniversary of U.S.-Korea relations and the founding of AMCHAM Korea this year, one of AMCHAM’s key initiatives is to establish Korea as regional headquarters in Asia Pacific. Given the robust infrastructure, human talents, and sound monetary policies, we believe Korea is well positioned to realize its potential as a business hub.” He continued, “We truly appreciate the remarkable leadership of the Bank of Korea and Board Member Suh Young Kyung in enabling sustainable economic growth for Korea.” He added, “While there are uncertainties and challenges in the global economy this year, we remain optimistic that the Korean Government, with its strong commitment to delivering economic reforms, will be able to navigate the economic landscape wisely. AMCHAM will also continue to accelerate its effort this year to promote greater economic growth in Korea.”
Dr. Suh Young Kyung delivered a keynote speech on the theme of “Economic Outlook and Risk Factors.” She pointed out that the global economy will continue to face difficulties with global inflation remaining high and growth slowing compared to last year. However, global economic conditions have somewhat improved due to recent adjustments in the pace of monetary policy tightening of major countries, the ease of the European energy crisis and the recovery of the Chinese economy. She also mentioned that the outlook on the U.S. economy is mixed, adding that pessimists warn of a hard landing while optimists think a soft landing can be navigated, given the strength in employment condition.
Dr. Suh predicted that Korea’s domestic economic growth is slowing, forecasting growth at 1.7% in 2023. She determined that this is due to a decline in exports and weakened domestic demand. Furthermore, she forecast that the Korean economy will face great uncertainty this year as overall employment conditions have worsened in both quantity and quality. Given the Chinese economy’s speed of recovery, increased household debt, falling housing prices, financial markets instability and widening gaps in interest rates between the U.S. and Korea, uncertainty in the economy is expected to continue.
It was also analyzed that global supply chain issues will remain a challenge for Korean companies heavily reliant on exports as the global economic order rapidly changes its direction to becoming online and environmentally friendly. Dr. Suh highlighted that a structural weakness of the Korean economy that was revealed by the COVID-19 pandemic was the inequality in growth. She emphasized that the biggest structural problem the Korean economy faces is the change in demographics, which would cut into the country's growth potential in the mid- to long-term.
In her final remarks, Dr. Suh said, “Going forward, the Board will continue to conduct monetary policy that contributes to stable economic growth through maintaining price and financial stability while thoroughly assessing changes of economic conditions at home and abroad.”
주한미국상공회의소, 서영경 한국은행 금융통화위원 초청 특별 간담회 개최
국내·외 경제 흐름의 특징과 전망, 주요 리스크 요인 등 검토
한국은행 통화정책 방향 이해를 통한 한·미 경제 협력 강화 전략 모색