‘G20 to boost Korean economy by W31.3tr’

The Group of 20 Summit in Seoul next month will be able to create 31 trillion won ($27.9 billion) in economic effects and over 160,000 jobs in Korea, the Institute for International Trade under Korea International Trade Association said in a report.

“The Seoul summit will draw around double the attention from the world than previous ones in Pittsburgh and Toronto because it is the first to be hosted and chaired by an emerging economy,” IIT president Lee Kyung-tae told reporters Thursday.

“It will also deal with and try to draw conclusions for diverse mid- to long-term post-crisis agenda both in the main and Business Summit, thus leading to more economic effects initiated by the event.”

Lee said the G20 Summit, which is expected to draw in over 15,000 people, including heads of 19 other G20 member nations, will affect the nation widely in its political, social and cultural sectors. 

The list included direct the effects of 26.6 billion won, such as visitors’ spending and the reduction in firms’ advertising costs which should result from an improved national image through the summit. 

Indirect effects of the summit meanwhile could include an increase in exports by $17.3 billion; reduction in foreign debts by $250 million should the country’s OECD credit rating be elevated by a grade; plus creation of around 166,000 jobs. 

According to a survey by KITA, its more than 200 member firms expected to see their exports increase by $22.9 in the next two years through the G20 Summit. 

Yet Lee stressed that local firms should not just be content with benefiting from such results but should also develop their competitiveness in technology anddesign. 

“As Korea will become a rule setter in the global economy through the summit, itsbusinesses should also be able to become leading players in the international market,” Lee said.

Lee also discussed the future of the G20 Summit, which has been very successful in initiating active global cooperation among nations since being created right after the 2008 financial crisis. 

This led to a rather fast recovery, unlike what happened during the prolonged Great Depression in 1920s when countries adopted protective trade measures and depreciated their currencies. 

“Some cast doubts on the future of the G20 Summit now that the world seems to be out of the financial crisis. But it has to grow into a global economic governing body that prevents another financial crisis from happening and secures sustainable growth,” Lee said.