CNBC Exclusive Interview: South Korea Minister of Strategy & Finance, Choi Kyung-hwan

The Korean finance chief, Choi Kyung-hwan thinks that smore timulus would be necessary. Further, the Korean economic fundamentals are sound and the competitiveness of Korean enterprises is good.

From CNBC:

Julia Chatterley (JC): So the Central Bank recently downgraded growth estimates for the South Korean economy, you've front-loaded spending for 2015, what more can you do in terms of fiscal stimulus for the economy?
Choi Kyung-hwan (CKH): Korean economy last year had implemented expansionary macroeconomics and as a result I believe we are seeing some recovery in the market and we will have to keep our eyes on the market during the first half of this year to see how the policy plays out and if required we will provide additional stimulus in the second half of this year.

JC: So you don't think this is a "back-door policy" to support Tim Cook and Apple and sell more Apple products than Samsung?
CKH: That actually would be very…on the product competitiveness of Samsung and Apple. In the short-term perhaps the exchange rate may have some influence, however, as far as the mid-term and long-term outcomes are concerned, it's their product competitiveness.
JC: So what about competitiveness then for South Korean companies? We saw the operating earnings drop double digits last year, they're getting squeezed as far as the automakers are concerned by competitors in the U.S. and in Europe…you look at the smartwatch, the watch developers, they're also getting squeezed by low-cost production from China in particular…how do you help your companies to compete cause they can't cut costs indefinitely?
CKH: It's true,Korean companies are being challenged by Chinese companies, especially in areas where Korea used to have much strength. And as such, Korean companies have to try even harder and one area that Korean companies are trying harder is the Research and Development area, we are pursuing accelerated innovation approaches and further when it comes to government, we are trying to help these corporations to be more competitive and one way we are doing that is by restructuring the labour market in sort of a reformation…and we are trying to supply more productive manpower that is available to the corporations. Further, the government is seeking to reform the regulations so that the corporations can be more, more competitive.

http://www.cnbc.com/id/102595946#.