▲ Finance Minister Choo Kyung-ho speaks during an event in New York, in this photo released by the Ministry of Economy and Finance on Oct. 12, 2022. (PHOTO NOT FOR SALE) (Yonhap)

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S. Korea's external resilience remains 'intact' amid global uncertainties: finance minister

By Kang Yoon-seung

NEW YORK/SEJONG, Oct. 12 (Yonhap) -- South Korea's external resilience remains "intact" amid growing global uncertainties, Seoul's finance minister said Tuesday (U.S. time), as Asia's No. 4 economy has been faring relatively well compared with other advanced nations in terms of trades.

Finance Minister Choo Kyung-ho made the remarks in New York during his presentation delivered to officials from investment banks, including JP Morgan, Goldman Sachs and Citigroup, the Ministry of Economy and Finance said.

During the session, Choo said the Korean won is not the only currency affected by "an unprecedentedly strong U.S. dollar," and his country holds the eighth-largest foreign reserves in the world.

This year, the won has depreciated around 16 percent against the greenback, trading at an over 13-year low.

The finance minister also pointed out that South Korea's premium on credit default swaps (CDSs) is still at low levels, indicating that the country's financial health remains strong.

The CDS premium reflects the cost of hedging credit risks on corporate or sovereign debt, with a decline implying higher costs.

In terms of its current account, Choo said that all advanced nations are facing challenges due to a hike in energy prices, and South Korea is still predicted to log a surplus for all of 2022.

In August, South Korea posted a current account deficit for the first time in four months as import bills continued to mount amid high energy and raw material prices.

"To maintain the current account surplus, (South Korea will) bolster its export competitiveness, diversify its import portfolio to ease the dependence on China," Choo said.

Choo added that South Korea will also make efforts to be included in the World Government Bond Index (WGBI) operated by FTSE Russell to make its financial market more attractive for foreign investors.

The WGBI is a broad index designed to measure the performance of government bond markets, including local currencies and sovereign bonds of major advanced nations.

The finance minister, meanwhile, was visiting the United States to attend a Group of 20 (G-20) meeting of finance chiefs and central bankers, along with other events.

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