Seoul: Industry Minister Ahn Duk-geun announced that the government will devise new strategies next month to support exporting companies, as the outlook for key export sectors like semiconductors and automobiles remains bleak due to global economic uncertainties.
According to Yonhap News Agency, Ahn's comments were made during a meeting with Yoon Jin-sik, the chairman of the Korea International Trade Association (KITA). Ahn expressed concerns over the challenging export conditions anticipated in the first half of the year, citing the deteriorating market for essential items such as semiconductors and automobiles. He urged KITA to leverage its global network to create favorable conditions for South Korean businesses and assist the government in formulating effective trade policies.
Despite a notable 8.2 percent increase in exports in 2024, reaching a record high of US$683.8 billion, the ministry warns of heightened uncertainties this year due to the new U.S. administration and geopolitical risks. Ahn highlighted the challenges posed by geopolitical tensions, rising protectionism, and supply chain realignments, and emphasized the government's commitment to working with key nations to mitigate these risks.
Ahn also convened a joint meeting with officials from related ministries and private entities to discuss potential shifts in U.S. trade policies under the second Trump administration. In his inauguration address, Trump pledged to overhaul America's trade system, proposing tariffs on imports and considering the elimination of subsidies for electric vehicles, which could impact South Korean carmakers significantly.
To address these concerns, Ahn stated that his ministry has dispatched a working-level delegation to the U.S. to engage in discussions on possible policy changes, affirming the government's vigilance in monitoring any developments.