Seoul
As South Korea braces for the potential shifts in global trade policies following the U.S. presidential election, the government has outlined its strategy to maintain export growth and adapt to new trade dynamics, the industry ministry said on Wednesday.
The Ministry of Trade, Industry, and Energy unveiled plans to address uncertainties surrounding the new U.S. administration, which has hinted at protectionist policies, including potential blanket tariffs on imports. In response, South Korea intends to engage with U.S. officials to reduce business-related uncertainties and maintain strong trade relations.
The country is also focusing on diversifying its trade portfolio by upgrading existing Free Trade Agreements (FTAs) with partners like the U.K., Chile, and the ASEAN bloc. Additionally, South Korea is negotiating economic partnership agreements with Mongolia, Thailand, Tanzania, and Serbia to mitigate global trade risks, particularly arising from geopolitical tensions and growing protectionism.
In its ongoing efforts to support key industries, South Korea is implementing a $12 billion low-interest loan initiative for semiconductor firms, part of a broader $20 billion package aimed at enhancing the sector’s global competitiveness. The country also aims to secure a major nuclear reactor construction deal with the Czech Republic in March 2025 and pursue an ambitious excavation project in the East Sea, potentially unlocking significant oil and gas reserves.
The government’s proactive approach is designed to sustain South Korea’s export growth, which has seen a positive trajectory for 13 consecutive months, while also preparing the nation to navigate a more complex global trade environment.
