9 out of 10 Export Companies Say "Trade Functions Should Remain in the Ministry of Trade, Industry and Energy"

KIAF Online Survey Conducted
108 out of 124 Companies Want It Maintained
"Smooth Communication Possible Only If Under Ministry of Trade, Industry and Energy"

[Asia Economy Reporter Yoo Hyun-seok] Nine out of ten domestic export companies expressed the opinion that trade functions should remain under the current system of the Ministry of Trade, Industry and Energy. While the Presidential Transition Committee is considering transferring the trade functions of the Ministry of Trade, Industry and Energy to the Ministry of Foreign Affairs, companies as policy consumers believe that keeping the Ministry of Trade, Industry and Energy is more efficient in responding to rapidly changing global circumstances. It is interpreted that companies judged it more advantageous for trade affairs to be handled by the Ministry of Trade, Industry and Energy, which communicates relatively smoothly, in order to respond quickly to trade issues such as Japan's export restrictions, the China-originated diesel exhaust fluid crisis, and economic sanctions following Russia's invasion of Ukraine.

On the 23rd, the Korea Industrial Alliance Forum (KIAF) conducted an online random survey targeting export companies among its member firms. Of the 124 companies surveyed, 108 companies (87.1%) wanted the trade functions to remain under the Ministry of Trade, Industry and Energy.

Regarding the reasons for maintaining the status quo (multiple responses allowed), the most common answer was that having trade functions within the Ministry of Trade, Industry and Energy would facilitate smoother communication, with 64 companies (51.6%) responding this way. This is interpreted as companies feeling that the Ministry of Trade, Industry and Energy offers better perceived accessibility than the Ministry of Foreign Affairs. Half of the companies (50.8%, 63 companies) also believed that since trade is an extension of industry, it should be handled by the Ministry of Trade, Industry and Energy. Additionally, 46.8% (50 companies) responded that since trade infrastructure is well established within the Ministry of Trade, Industry and Energy, it should be utilized.

Amid growing global supply chain issues, considering the importance of major trade and energy public enterprises, 32% (40 companies) answered that it is more efficient for the Ministry of Trade, Industry and Energy, to which companies belong, to handle trade affairs. Furthermore, 22.6% (28 companies) expressed concerns that if trade functions were under the Ministry of Foreign Affairs, economic interests might be sacrificed in favor of prioritizing international political issues.

Only 14 companies (11.8%) supported the transfer to the Ministry of Foreign Affairs promoted by the Transition Committee. They cited reasons such as ▲maximizing national interests ▲advantageous overseas networks ▲smooth dialogue related to trade ▲importance of diplomatic capabilities in supply chain management.

KIAF explained that after compiling opinions from 16 industry groups, 14 associations and organizations responded that trade functions should remain under the Ministry of Trade, Industry and Energy. Two associations did not respond.

Jung Manki, Chairman of KIAF, stated, "The results of this survey show that companies believe the decision on the trade-related government department should be made based on corporate opinions rather than solely by government ministries. Since the Transition Committee and the new government need to reflect these opinions when deciding on the trade function department in the future, KIAF plans to submit the survey results to the Transition Committee and the Ministry of Trade, Industry and Energy."

An industry official said, "In a situation where companies need to foster future growth engines and make large-scale investment decisions, it is more advantageous to keep trade affairs within the Ministry of Trade, Industry and Energy. Given that President-elect Yoon Seok-yeol has clearly delivered pro-business messages, attention must be paid to whether corporate opinions will be reflected before transferring trade functions."

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