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Korea deploys 'economic envoys' to convince U.S. investors that everything is fine

Published: 12 Dec. 2024, 19:01

CHO YONG-JUN
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Former Financial Services Commission (FSC) Chairman Jun Kwang-woo [JOONGANG PHOTO]

The Korean government plans to send special economic envoys to the United States and other major nations in an attempt to reassure foreign investors following the chaotic aftermath of President Yoon Suk Yeol’s short-lived martial law declaration.

Former Financial Services Commission (FSC) Chairman Jun Kwang-woo has been appointed an ambassador for international financial cooperation, according to the JoongAng Ilbo, an affiliate of the Korea JoongAng Daily.

Jun is known to have accepted the appointment in a way to “help the Korean economy,” which is still marked by concerns over the possible impeachment of President Yoon Suk Yeol. Despite the short-lived nature of the president's martial law declaration, analysts have continued warning investors to expect volatility in Korea's markets as the political mess drags on.

The ambassador position is akin to a special envoy for economic affairs, as the post is assigned only in times of crisis. The country has appointed two other ambassadors for international financial cooperation, one following North Korea's first nuclear testing in February 2007 and the other shortly after the impeachment of President Park Geun-hye in January 2017.

The appointment intended to prove to overseas investors and government officials that the Korean economic system remains solid and that the government’s response to emergency situations is working as intended, in the hopes of minimizing the effect that the political turmoil has on the country’s credit rating.

Jun meet key appointees of President-elect Donald Trump’s upcoming administration, foreign investors and staff from credit rating institutions.

He previously served as chief economist and director of international finance at the World Bank and served as the Woori Financial Group Vice Chairman and Deloitte Korea Chairman before working as the first president of the FSC and the CEO and chairman of the National Pension Service.

The government “considered Jun’s experience leading the National Pension Service, which is known to play an important role in the global capital markets,” a government official said. “He will be contacting major investment banks and credit companies to join in to stabilize the Korean market.”

An ambassador for international financial cooperation is considered an unpaid honorary role, with the appointment usually lasting for a year. The government is known to be looking for more candidates at the moment.

“Deputy Prime Minster Choi Sang-mok is personally contacting candidates to persuade them,” a government official said.

Other government officials are also trying to ensure the stability of the economy, with FSC Chairman Kim Byoung-hwan scheduled to meet the British Ambassador to Korea Colin Crooks on Wednesday.

“We are closely monitoring the impact of the political turmoil caused to the financial market,” Kim said. “We have sturdier market safety tools following our experience maintaining the financial system through the political turmoil of 2016.”

First Vice Minister of Economy and Finance Kim Beom-seok also told the Canadian embassy's economy and security specialist that the “impacts caused by noneconomic factors are adequately controlled by the healthy economic system,” while attending the Korea-Canada Economic Security Forum on Wednesday.

“Despite domestic conditions, government policies will go ahead in accordance with their scheduled dates, so foreign investing companies can be result assured and focus on their economic activities,” Trade Minister Cheong In-kyo told the American Chamber of Commerce in Korea on Wednesday.

BY KWAK JAE-MIN, KIM KI-HWAN [[email protected]]