South Korean policymakers are concerned about the country’s “twin deficits.” President Yoon Suk-yeol recently chaired an Export Strategy Meeting, hailing exports as the solution to the nation’s economic problems. However, trade deficits have persisted for the last year, and there’s no clear end in sight.

This is unusual for South Korea, as it’s known for being one of the world’s leading exporting countries and has only recently started running significant government deficits.

A Korea Pro analysis reveals:

• The two deficits (government and trade) are not directly connected, and the government’s deficit is not driving the trade deficit directly.
• Much of