Seoul to Curb Exports Amid U.S. Pressure

South Korea today announced a “sweeping” new economic plan to wean the country from its export dependency and attempt to ease protectionist rumblings by the United States.

The new policy, announced by Deputy Prime Minister Kim Mahn Jae, was aimed at correcting imbalances in the national economy caused by Korea’s heavy reliance on exports, a statement said.

“To promote balanced growth, Korea will discourage quantity-oriented export, encourage further modernization of the nation’s industrial structure and expand expenditures on rural development and social welfare,” Kim said.

Last year, exports grew 35% and accounted for 40% of the gross national product. In the first quarter of 1987, exports grew another 35% from the same period last year, government figures show.

American Pressure

With 40% of all Korean exports shipped to the United States, there has been increasing pressure from American officials to open more Korean markets to American consumer goods and services.

A Western diplomatic source called the announcement “a very sweeping proposal” but cautioned that “the proof of the pudding is in the implementation” of the new policies.

“Proposals of these kinds have to be looked at in tandem with the implementing details,” said the source, who asked to remain anonymous.

B. Y. Koo, director general of the International Policy Office of the Korean Economic Planning Board, said government ministries involved with implementation will issue guidelines in the next few weeks.

Pressure already is being applied to South Korea to steeply revalue its currency, the won, against the dollar and open markets to American goods in an effort to reduce its $7.4-billion trade surplus with the United States.