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S. Korea's economy poised for rebound next year: finance minister

Economy 10:40 December 27, 2019

SEOUL, Dec. 27 (Yonhap) -- South Korea's economy is expected to gain recovery momentum next year, supported by a global economic recovery and an anticipated upturn in the memory-chip market, Finance Minister Hong Nam-ki said Friday.

Hong made the remarks at a meeting in Seoul with top executives of Korean companies on next year's economic policies.

"Next year, the global economy is expected to improve and the nation's economy is also expected to gain recovery momentum," Hong told the meeting.

"Opportunities coexist with risks next year. The government will spare no efforts to build momentum for an economic recovery next year," Hong said.

Finance Minister Hong Nam-ki speaks at a meeting with senior executives of Korean firms on Dec. 27, 2019. (Yonhap)

Easing trade tension between the United States and China is likely to lift the global economy and global demand for memory chips will pick up early next year, Hong said.

However, future trade negotiations between the U.S. and China and lackluster investment in the local construction sector will provide causes for pessimism in the Korean economy next year, Hong said.

South Korea's economy is expected to grow 2.4 percent next year, following this year's estimated 2-percent expansion, on the back of an anticipated recovery in the memory chip sector and a series of policy measures.

Hit by a lengthy U.S.-China trade war and a cyclical slump in the memory chip sector, Korea's economy is poised to report its weakest annual growth in a decade this year.


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