"Rapid Shift in Global Trade Paradigm... Need to Strengthen Industry-Trade Connectivity for Response"

Industrial Development Forum and Automobile Industry Development Forum Held
Chairman Jeong Manki: "Communication Between Industry and Authorities Is Important"

Jung Manki, Chairman of the Korea Industrial Federation Forum. / Photo by Moon Honam munonam@

[Asia Economy Reporter Kiho Sung] Amid the rapidly changing global trade paradigm due to the Russia-Ukraine conflict and US-China supply chain tensions, there have been calls for strengthening the linkage between industry and trade to protect and foster our industries. Considering the upcoming presidential election and the inauguration of the new government, advice has been given that new policy support is necessary.

The Korea Industrial Alliance Forum (KIAF), which includes 16 economic organizations, held the 18th Industrial Development Forum and the 23rd Automotive Industry Development Forum on the 4th under the theme "Changes in the External Environment Surrounding Our Industry and Trade Policy Tasks."

Jung Kwang-ha, Director of the Future Industry Research Institute at KIAF, stated in his keynote presentation, "With China accounting for 25.3% of our exports, the high export proportions to China in sectors such as semiconductors (39.7%), electronics, chemicals, and automotive parts are risk factors." He emphasized, "The expansion of supply chain-related investments by the US and EU and the new supply chain construction plans centered on ASEAN countries like Vietnam will present opportunities as new markets."

Director Jung also said, "Since South Korea can be a candidate destination for multinational companies targeting the Chinese domestic market, we need to accelerate the tariff elimination under the Korea-China FTA and drastically improve our foreign investment environment to attract investments from multinational companies exiting China." He added, "Industry-friendly trade policies are directly linked to strengthening industrial competitiveness," and stressed, "The Ministry of Trade, Industry and Energy should closely communicate with industrial sites to establish practical trade policies and negotiation strategies by industry, adjusting interests according to the advantages and disadvantages of each sector."

Jung Manki, Chairman of KIAF, argued, "The global trade paradigm is shifting from a past focus on the expansion of free trade to a new focus on regulations and norms prioritizing national interests, making the trade environment more uncertain."

He stated, "It is important to prepare and implement trade policies based on smooth communication between industries that form the foundation of our trade?such as semiconductors, automobiles, steel, and secondary batteries?and policy authorities," and suggested, "To minimize the sacrifice of our trade interests due to international political situations, trade policy should be separated and pursued independently from diplomatic policy according to the principle of separating politics and economics." He explained that any side effects from strengthening this separation should be compensated for by the coordinating functions of the Blue House or the Prime Minister's Office.

Meanwhile, the forum continued with keynote presentations by Professor Hyoyoung Lee of the Korea National Diplomatic Academy and Professor Deokgeun Ahn of Seoul National University. This was followed by designated discussions chaired by Professor Jonggeun Jeon of Hankuk University of Foreign Studies, with panelists including Associate Research Fellow Wonho Yeon of the Korea Institute for International Economic Policy, Professor Hanpil Moon of Chonnam National University, and Executive Director Kyungjin Song of the Innovation Economy Association.

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