52.3% of Venture Companies Say Trump Administration Policies Negatively Impact Business

Impact Assessment on Domestic Venture Companies Following the Launch of Trump’s Second Administration

More than half of domestic venture companies predicted that policy changes under the second Trump administration would have a negative impact on the business environment.

The Korea Venture Business Association announced the results of a survey titled 'Impact of the Second Trump Administration on Domestic Venture Companies' on the 23rd. This survey was conducted from December 4 to 11 targeting 400 venture companies to analyze the effects of major policy changes under the second Trump administration on the venture business environment and to prepare response strategies.

The survey results showed that 52.3% of venture companies responded that policy changes by the Trump administration would negatively affect the business environment. Only 10.6% expected a positive impact, while the remaining 37.3% responded 'neutral.'

Strengthened protectionism, establishment of a domestic-centered supply chain, and exchange rate risks were identified as major factors increasing uncertainty in business management. More than 60% of venture companies responded negatively to 'trade and commerce policies (65.2%)' and 'exchange rate fluctuations (62.2%).' Specifically, many companies expressed concerns about 'rising raw material prices due to exchange rate fluctuations' and 'weakened product price competitiveness due to tariff increases.'

Company A, a major semiconductor vendor exporting to the United States, stated, “If the U.S. introduces universal tariffs, sales will decrease due to reduced product price competitiveness.” Electronics parts company B responded, “Rising costs of raw materials due to exchange rate fluctuations will negatively impact sales.”

When asked about preparedness for policy changes under the Trump administration, only 0.8% of companies answered that they were 'prepared,' and 34.5% said they were 'in preparation.' In contrast, 54.4% responded that they were 'not preparing.' This indicates that many companies have not yet developed response strategies, highlighting the need for prompt action.

Venture companies prioritized 'strengthening product and service competitiveness (53.9%)' and 'discovering and entering new markets (48.0%)' as key strategies to cope with policy changes under the Trump administration. This was followed by 'monitoring policy changes (29.6%)' and 'managing supply chain risks (28.2%).' Other opinions included diversifying raw material imports, relocating factories overseas, and monitoring exchange rates.

Venture companies identified 'financial and foreign exchange risk management (51.5%)' as the top support policy. This reflects the venture industry's concerns about exchange rate volatility mentioned earlier. Along with this, there was a high response rate for 'export support (49.0%)' such as discovering alternative markets and developing sales channels. This was followed by 'domestic regulatory relaxation (31.3%)' and 'providing information on U.S. policy changes (22.0%).'

Sung Sang-yeop, chairman of the Korea Venture Business Association, said, “With the prolonged economic downturn, the uncertainty in trade environment due to the launch of the second Trump administration, and recent domestic political instability overlapping, the anxiety among venture companies is growing significantly.” He added, “We are facing a crisis unlike anything experienced in the past 30 years, including instability in financial and foreign exchange markets and the decline in competitiveness of major domestic industries. We request active attention and policy support from the executive and legislative branches so that our venture companies can once again become the savior of the Korean economy.”

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