President Yoon Suk-yeol delivers his New Year's address at the presidential office in Yongsan District, Sunday. Courtesy of presidential office

North Korea, diplomatic agenda missing in New Year's speech

By Nam Hyun-woo

President Yoon Suk-yeol said in a New Year's speech Sunday that he will place top priority on revitalizing the nation's exports to weather economic challenges, highlighting the country's economic recovery as being at the top of the agenda for his second year as president.

However, Yoon did not mention North Korea's increasing threats or political cohesion with the opposition bloc, indicating that his administration's main focus is on overcoming global economic difficulties.

"Countries around the world have relied on high-interest rates to counter soaring raw material prices and runaway inflation caused by global supply chain disruptions," Yoon said in the televised New Year's message.

"The possibility of the world economy slipping into a recession this year is higher than ever before… Exports are our key to overcoming this complex crisis. They form the basis of our economy and create jobs."

For South Korea, which has a relatively small domestic market, exports have long been the growth driver of the country, salvaging its economy from major economic crises in the past.

This message came as the country logged its largest-ever trade deficit of $47.2 billion (59 trillion won) due to global energy price fluctuations stemming from the war between Russia and Ukraine although it posted an all-time high in exports of $683.9 billion. This raised voices that trade is no longer confined to the logic of the economy.

"Our export strategy must differ from the past," Yoon said. "Those countries that share the universal values of freedom, human rights and the rule of law are banding together through their economies and industries. This solidarity based on these universal values is the most strategic choice in the current diplomatic landscape."

"I will personally attend to our export strategy while focusing all diplomatic efforts on the economy."

Yoon promised that the government will carry out "a $50 billion project" to help domestic businesses win overseas orders reaching that amount and increase the volume of trade finance to an all-time high of 360 trillion won.