Korea's political turmoil has hampered diplomatic momentum with incoming Trump gov't, top envoy admits

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Korea's political turmoil has hampered diplomatic momentum with incoming Trump gov't, top envoy admits

Published: 18 Dec. 2024, 18:53 Updated: 19 Dec. 2024, 14:16

SEO JI-EUN
[email protected]

SHIN HA-NEE
[email protected]

Audio report: written by reporters, read by AI

Deputy Prime Minister and Finance Minister Choi Sang-mok, left, and Foreign Minister Cho Tae-yul hold a press briefing with foreign correspondents in Seoul on Dec. 18. [NEWS1]

Korea's Foreign Minister Cho Tae-yul admitted Wednesday that the recent declaration of martial law and the consequent impeachment of President Yoon Suk Yeol strained the country's diplomatic momentum, particularly with the incoming U.S. administration led by President Donald Trump.

“This situation has weakened the political momentum we had built before, and restoring it will take time,” Cho said at a rare joint press briefing with Finance Minister Choi Sang-mok for foreign journalists in Seoul. “With the president suspended, there are limitations, but we are fully committed to regaining that momentum as quickly as possible.”

North Korean leader Kim Jong-un, left, and then-U.S. President Donald Trump shake hands across the Military Demarcation Line at Panmunjom on June 30, 2019, in this photo released by North's state media KCNA the following day. [YONHAP]

Despite the domestic turmoil, Cho expressed confidence that the Trump administration would take the issue of North Korea, including the nuclear program, "in a serious manner" and as a priority, pointing to Trump’s appointment of his former intelligence chief Richard Grenell as a special envoy for hotspots like North Korea as a "good indication."

"This is why the ministry is making pre-emptive efforts in building up plans and road maps in preparation for the new Trump administration taking his ideas into actual policies," Cho said, adding that Korea is "open to all opportunities" if any arise regarding talks with North Korea related to nuclear issues.

Cho also addressed the domestic implications of the Dec. 3 martial law declaration, describing it as “personally stunning.”

"The last time martial law was declared was in 1979, the year I joined the Foreign Ministry — never did I imagine that it would be declared again 45 years later in [today’s] Korea," he said.

Cho also responded to concerns raised by Japanese media about Korea-Japan relations, which have experienced a dramatic turnaround during Yoon's administration, including the recovered "shuttle diplomacy."

On whether existing agreements would remain valid under a new government, Cho said, “We have been honoring and fulfilling all the agreements and promises that we have made with Japan so far.”

“There's no major or negative impact from the recent political development on our preparations for celebrating the 60th anniversary [of normalized Korea-Japan relations] next year,” he added.

However, Cho said the government is "concerned" that Japan may take the recent political development "too seriously," potentially bringing a "slowdown" in the momentum to prepare for next year's anniversary celebration.

Cho also reaffirmed efforts to facilitate Chinese President Xi Jinping’s visit to Korea, possibly during the Asia-Pacific Economic Cooperation (APEC) Summit in Gyeongju next year. A visit during the summit would be Xi's first to Korea in over a decade.

“As far as I know, Xi has attended all APEC economic leaders' meetings so far, and we expect Xi to attend the APEC 2025 leaders' meeting to be held in Gyeongju as well,” Cho said. "We have been cooperating with the APEC team in China, so our stance and preparation remain unchanged."

Minister of Economy and Finance Choi Sang-mok, left, and Bank of Korea Gov. Rhee Chang-yong attend a parliamentary inquiry at the National Assembly in western Seoul on Dec. 17. [NEWS1]

Finance Minister Choi once again reassured the audience of the situation’s stability, saying that the stubbornly high foreign exchange market volatility would “ease as the situation proceeds.”

“It would be inappropriate for a government official to discuss a specific currency level or short-term fluctuations,” Choi said, but added, “It is true that the won, which had already been on a depreciation trend due to the global strengthening of the dollar, is experiencing heightened volatility following recent political developments.”

However, the deputy prime minister stressed, “We expect the [volatility] would ease as the situation proceeds, as the Bank of Korea governor mentioned yesterday.”

During a parliamentary inquiry on Tuesday, BOK Gov. Rhee Chang-yong reassured lawmakers that “concerns about a foreign exchange crisis are overstated,” saying that Korea, as a net creditor nation, is experiencing no difficulties in regular foreign exchange operations.

Choi reinstated his promise that the government would prioritize maintaining the country’s sovereign credit standing in his remarks during the latest conference.

“While the Korean economy faces increased uncertainties both internally and externally, [the authorities] have been managing and mitigating such uncertainties with Korea’s constitutional, economic and emergency response systems operating smoothly,” Choi said.

“First and foremost, we will focus on maintaining the sovereign credit standing,” the minister vowed, adding that the government will continue to operate its around-the-clock monitoring system on the financial and foreign exchange markets and bolster incentive measures to draw foreign investments.

As Korea grapples with weak domestic demand, the minister added that the government will start executing next year’s budget at the beginning of the new year to boost the sluggish domestic economy.

Joint foreign press briefings by Korea's foreign and finance ministers are exceedingly rare.

The last joint briefing for foreign media held followed the deadly sinking of the South Korean warship Cheonan by the North in 2010, when the financial authorities, the Bank of Korea and the Ministry of Foreign Affairs organized an emergency teleconference.

During the 2016 impeachment of President Park Geun-hye, then-Finance Minister Yoo Il-ho held a solo foreign press conference.

An electronic board at Hana Bank's trading room in central Seoul shows the won trading at 1,435.90 per dollar during the extended trading hour, after the won-dollar exchange rate closed at 1,435.80, down 3.10 won from the previous session, by the end of the regular trading time at 3:30 p.m. on Dec. 18. [NEWS1]

Wednesday's briefing sought to reassure the international community about Korea's stability and resilience, with the ministers emphasizing the government's swift measures to mitigate uncertainty.

The recent political turmoil has disrupted Korea’s financial markets, with the Korean won weakening and exchange rates fluctuating. Key diplomatic events have been postponed indefinitely, including a Korea-U.S. Nuclear Consultative Group (NCG) meeting and a 1.5-track trilateral forum with Japan and the United States.

BY SEO JI-EUN, SHIN HA-NEE [[email protected]]