Singapore’s primary Chinese language-newspaper Lianhe Zaobao recently reported that the South Korean government has responded to elevated risk in China’s real estate industry by setting up a special working group, the “China Economic Situation Team,” focused on the impact of Chinese financial risk on the Korean economy.
According to the article, the group will work under the policy guidance of the Ministry of Finance, maintain close cooperation with multiple government branches such as the Bank of Korea (the Central Bank), the Ministry of Industry, Trade and Energy, and the Financial Commission, and pay careful attention to changes in China’s economic situation. In addition, the government’s high-level dialogue mechanism will also focus on China’s real estate financial risks.
Given that the Korean and Chinese economies are tightly linked, South Korea’s Ministry of Finance thinks that the South Korean government should closely monitor the impact of Chinese risk on the Korean financial market and real economy. South Korea’s Economic Emergency Management Working Group, chaired by the deputy minister of the Ministry of Finance, will discuss countermeasures, and the Committee on Macroeconomic and Financial Issues will also evaluate China’s economic situation frequently.
Source: Lianhe Zaobao, August 20, 2023