Seoul: The industry ministry of South Korea declared its commitment to sustaining the nation's export momentum amidst global trade uncertainties, specifically addressing the impact of U.S. tariffs on local companies.
According to Yonhap News Agency, Korea's exports have demonstrated resilience, growing by 0.9 percent year-on-year in the January-August period, reaching a total value of US$453.8 billion. This growth is attributed to the competitiveness of Korean products and efforts by companies to diversify their markets. Park Jung-sung, the deputy minister for trade and investment, emphasized the government's dedication to supporting industries affected by U.S. tariffs through a comprehensive support plan introduced earlier this month.
Park highlighted the ministry's focus on aiding Korean companies facing challenges due to U.S. tariff measures, as well as supporting their efforts to diversify export destinations and enhance export competitiveness. Notably, the semiconductor sector experienced a substantial 16 percent increase in outbound shipments, amounting to $103.1 billion. Similarly, the automobile sector saw a 1 percent rise to $47.7 billion, while biohealth products and ship exports climbed 6 percent and 24 percent to $10.5 billion and $19.4 billion, respectively.
In contrast, steel exports witnessed a 7 percent decline to $20.7 billion, a consequence of the U.S. administration's 50 percent tariffs on steel imports and a global oversupply. Exports of petroleum and petrochemical products also saw declines, contracting 15 percent and 12 percent to $30 billion and $29 billion, respectively.
In the first 20 days of September, South Korea's exports expanded by 13.5 percent on-year to $40.12 billion, driven by increased working days and robust demand for semiconductors, as reported by the Korea Customs Service. In response to U.S. steel tariffs, the government announced a provision of up to 570 billion won ($409 million) in emergency financial aid for affected companies and an increase in trade insurance volume to 270 trillion won for the year.
The industry ministry also plans to improve consultation services for companies impacted by U.S. tariffs in collaboration with the Korea Trade-Investment Promotion Agency (KOTRA) and other relevant agencies, aiming to provide more effective solutions. Additionally, new services will be introduced to assist companies in presenting their opinions to the U.S. government regarding tariff-related challenges and offer consultations on advance decisions by the U.S. Customs and Border Protection on tariff classification.