"Biden's Economic Nationalism: Both Concern and Opportunity for Korea"

KCCI Online Lecture... Professor Choi Byung-il of Ewha Womans University Forecasts 'US Biden Election, Future of Korean Economy?'
Mixed Outlook for Korean Industries: 'Semiconductors and Next-Gen Batteries' as Opportunities, 'Automobiles, Steel, Chemicals' and Carbon Tax-Related Sectors as Risks

Choi Byung-il, Professor at Ewha Womans University Graduate School of International Studies

[Asia Economy Reporter Changhwan Lee] An analysis has emerged that U.S. President-elect Joe Biden's economic nationalism presents both opportunities and concerns for South Korea.

Choi Byung-il, an international trade expert and professor at Ewha Womans University Graduate School of International Studies, stated this during an online lecture titled "U.S. Biden Election, What Lies Ahead for the Korean Economy?" hosted by the Korea Chamber of Commerce and Industry on the 10th.

Professor Choi said, "Joe Biden, elected as the 59th President of the United States, will focus domestically on a Made in all of America inclusive policy, emphasizing tax increases, strengthening federal government public procurement, and creating jobs within the country," adding, "At the same time, externally, Biden-style economic nationalism will rise, including imposing carbon taxes and prioritizing fair trade that values the environment and workers' human rights."

Regarding the impact of the Biden administration's environmental policy changes on domestic industries, Professor Choi analyzed, "If the U.S. not only rejoins the Paris Climate Agreement, which Trump withdrew from, but also imposes carbon taxes on imports aiming for zero carbon emissions, South Korea's automobile, steel, and petrochemical companies could be pushed to the brink," but he also noted, "On the other hand, semiconductor and battery companies could seize new opportunities."

He continued, "The Biden administration, which prioritizes fair trade over free trade, may return to the CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership) from which Trump withdrew, and will also form anti-China economic alliances with traditional allies," adding, "There is also an increased possibility of expanding the USMCA (United States-Mexico-Canada Agreement), which strengthens environmental and labor standards compared to the existing NAFTA, with the UK and Japan showing movements to join alongside the current members: the U.S., Mexico, and Canada."

He emphasized, "In this situation, South Korea, which has a high trade dependence on the U.S., must consider participating in the new U.S.-led economic alliances, which will serve as the first litmus test for Korean trade policy," and added, "To join the USMCA, Korean companies must prepare in advance for the high environmental and labor rights protection standards."

Regarding the outlook for U.S.-China economic relations, he diagnosed, "There is dissatisfaction over why Apple iPhones, designed in California, do not create jobs in the U.S. but in China, and criticism that the China policy has been too accommodating, leading to anti-China sentiment in the U.S. recently approaching 73%," and said, "Some expect Biden, who is close to Xi Jinping, to pursue a conciliatory policy toward China, but considering U.S. public opinion that hopes for job solutions and industrial technology revival, noticeable improvements in U.S.-China relations are unlikely."

Accordingly, Professor Choi predicted that South Korea's diplomatic policy, which has so far relied on the U.S. for security and China for the economy, known as 'Anmi Gyeongjung (安美經中),' will also face a test.

Meanwhile, the Korea Chamber of Commerce and Industry's Management Concert is a forum to hear expert opinions on strategic implications such as management strategies, management trends, and international affairs necessary for companies. Since its inception in 2014, it has been held in a webinar format since April this year due to COVID-19.

This content was produced with the assistance of AI translation services.