Biden US Administration Inauguration... Korea's 5 Promising Export Sectors

[Asia Economy Reporter Kim Hyewon] With the inauguration of the Joe Biden administration in the United States, export prospects for new industries such as renewable energy, electric vehicles, biohealth, digital transformation, and home living have brightened, leading to calls for Korean companies to actively enter the U.S. market.

The Korea International Trade Association’s International Trade and Commerce Research Institute presented promising export sectors considering the policy direction of the new Biden administration and recent changes in consumer market trends in its report titled "The Inauguration of the New U.S. Administration and Five Promising Export Sectors to the U.S." released on the 24th.

Items related to renewable energy are closely linked to the policy shifts of the Biden administration. President Biden has emphasized active investment in renewable energy infrastructure with the goal of achieving carbon neutrality by 2050. Accordingly, related items such as solar cells and modules, and wind towers are expected to benefit. Last year, the U.S. imported $8.16 billion worth of solar cells, of which 11.5%, or $940 million, were Korean-made.

Electric vehicles and their core components, such as batteries, are also evaluated as high-growth potential sectors supported by policies like the expansion of charging stations and subsidy programs in the U.S. Notably, last year, U.S. imports of Korean-made batteries increased by 20.5% year-on-year to $770 million, and this robust growth trend is expected to continue. As domestic companies expand their investments in the battery sector for the U.S. market, exports of key materials and equipment used in local production are also expected to increase, acting as a positive factor.

The biohealth market is expected to see export expansion driven by the new administration’s policy focus on strengthening public healthcare and the aging trend in the U.S. This year, the population aged 65 and older in the U.S. is approximately 55.05 million, the largest among developed countries. Accordingly, in addition to diagnostic kits, masks, and other quarantine supplies whose imports surged last year due to COVID-19, exports of related products including pharmaceuticals such as generics and biosimilars, as well as physical therapy devices, are expected to increase.

Demand driven by digital transformation, accelerated by COVID-19, is also expected to rise. In fact, last year, U.S. imports of solid-state drives (SSD) and cameras increased by 38.4% and 10.2% respectively compared to the previous year. Furthermore, with U.S. mobile carriers set to make full-scale investments in 5th generation mobile communication (5G) this year, exports of telecommunications equipment and components are also expected to be promising.

Exports of home and living items are also anticipated to expand, supported by the rise of the millennial generation. Millennials, who grew up with the development of the internet, are familiar with non-face-to-face trends using digital technology and prefer to center their consumption lifestyle around the home. Various processed foods and home appliances, including textiles whose U.S. imports increased by 36.2% last year, are expected to gain attention.

Jung Hyesun, senior researcher at the Korea International Trade Association, said, "We need to target the U.S. market with product development and marketing strategies related to the five promising sectors in line with the new policy changes of the U.S. administration." She added, "However, since the new administration is also expected to continue policies protecting U.S. domestic industries and restructuring supply chains centered on the U.S., Korean companies need to closely monitor policy trends and market conditions in the U.S. and prepare customized strategies accordingly."

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