[Initial Moment] Trump’s Second Term Begins... Fear of Aftershock from the Gap

"Who knows until the lid is opened." "It's just speculation, but..."

This is an indispensable addendum whenever business circles closely monitoring the initial moves of the 'Trump 2nd Administration' speak. Amid an unprecedented political and diplomatic vacuum in constitutional history, the business community quietly trembles as it faces the 'returned strongman,' U.S. President Donald Trump.

At President Trump's inauguration held on the 20th (local time) in Washington D.C., the status of South Korea as an 'ally' casts doubt on the future of the export powerhouse Republic of Korea. Except for Kim Dong-kwan, Vice Chairman of Hanwha Group, who was belatedly confirmed as an attendee, no heads or close aides of Korea's top 10 conglomerates were invited to the inauguration ceremony or the VIP (Very Important People) ball and dinner. Early confirmed attendees such as Chung Yong-jin, Chairman of Shinsegae Group, and Kim Beom-seok, Chairman of Coupang, are somewhat detached figures from export companies expected to play a pivotal role during the launch of the new U.S. administration.

President Trump immediately jumped off the global train of 'Sustainable' upon his inauguration. He revoked the previous administration of Joe Biden's executive order to convert 50% of new car sales to electric vehicles by 2030 and withdrew from the Paris Climate Agreement.

The 'America First Trade Policy' memorandum signed by President Trump on inauguration day also fails to provide clear guidelines to our business community. He advised the U.S. Trade Representative (USTR) to review existing trade agreements the U.S. has entered into and to carry out necessary or appropriate amendments to obtain or maintain 'mutually beneficial and reciprocal concessions' with free trade agreement partner countries. Regarding the universal tariff pledge, preparations are not yet complete, and he only announced that tariffs will be imposed 'soon.'

The 25% tariff announced for Canada and Mexico is reported to be imposed on the 1st of next month. Korean companies must carefully consider operational plans for production plants such as refrigerators, TVs, washing machines, and automobile factories operating in Mexico, which has been a North American export hub. The complex and arduous environment, which requires calculating both uncertainties and possibilities, is a burden that companies must bear.

It is an unavoidable tragedy that, while one individual at the pinnacle of power is frantically reshaping the world order, the government, which should observe this and exercise high-level diplomatic skills, is virtually absent. President Yoon Suk-yeol is under investigation for charges including leading a rebellion, and today (the 22nd), he is subject to forced summons by the High-ranking Officials' Crime Investigation Unit (PCC). While the National Assembly's 'Special Committee on the Truth Investigation of the Rebellion Charges through the Declaration of Martial Law by the Yoon Suk-yeol Government' begins its first hearing, Choi Sang-mok, Acting Prime Minister and Minister of Economy and Finance, and Cho Tae-yeol, Minister of Foreign Affairs?both subjects of the investigation?have yet to initiate high-level communication with the U.S.

China, which the U.S. has openly targeted as its main economic rival, also fired a diplomatic signal through a summit-level phone call, and the Wall Street Journal (WSJ), citing sources, reported that President Trump may visit China within 100 days of his inauguration. Japanese Prime Minister Shigeru Ishiba has stepped forward to coordinate talks with Trump, aiming to discuss security, economy, and diplomacy.

It is currently difficult even to calculate the aftershocks that the political and diplomatic vacuum will bring. Efforts to fetch water from outside with a broken bowl shattered by internal strife will be of no use.

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