Jongwon Park, Deputy Minister for Trade, "Peak of US-Originated Uncertainty, Growing Concerns Over Export Slump"

Deputy Minister Park Jongwon: Internal and External Uncertainties at Their Peak
Concerns Grow Over Export Slump with Trump’s Inauguration
Plans to Respond in Close Cooperation with Companies

Export containers are being loaded onto a ship at Busan North Port. Photo by Jinhyung Kang aymsdream@

With the inauguration of U.S. President Donald Trump, external uncertainties surrounding South Korea have reached their peak, and it is forecasted that our exports will face significant difficulties in the first half of the year.

Park Jong-won, Deputy Minister for Trade at the Ministry of Trade, Industry and Energy, stated at the Near Foundation New Year Economic Forum held at the Korea Chamber of Commerce and Industry in Seoul on the 22nd, "As export conditions for our key items such as semiconductors and secondary batteries worsen, combined with domestic political instability and the launch of the Trump administration in the U.S., the internal and external uncertainties that companies are wary of have reached their peak."

Speaking as the keynote speaker at the forum, Deputy Minister Park said, "President Trump announced future policy directions through his inaugural address, including a complete overhaul of trade policy, expansion of energy exports, termination of the Green New Deal policy, and abolition of electric vehicle subsidies. As the anticipated measures have been officially announced, it has become important to understand what impact they will have on our economy."

He added, "As the protectionist measures declared by President Trump materialize, there is a high possibility that U.S. export and investment companies will face increased operational difficulties, and significant ripple effects are expected in the global trade environment. As the barriers to the U.S. market rise, the inflow of low-priced products into the domestic market will increase, and competition among companies in third-country markets will become fiercer, so proactive responses are necessary."

Deputy Minister Park predicted that our exports would face difficulties this year due to changes in the external environment. He explained, "Although exports reached a record high last year, there is a high possibility of difficulties this year. Since exports in the first half, when negative factors are concentrated, may be particularly challenging, we will focus policy resources intensively in the first half."

He continued, "We plan to implement a 'three-piece export support set' including trade insurance support worth a record 252 trillion won mainly for small and medium-sized enterprises and mid-sized companies, logistics support, and support for entry into global online platforms. Considering the severe export situation, we will prepare and soon announce a government-wide export support plan."

Concerns Over Long-Term Low Growth in the Korean Economy

Concerns about long-term low growth in the Korean economy were also raised at the forum. Kim Dong-won, former invited professor of economics at Korea University and a speaker in the second session, said, "This year, South Korea faces the risk of losing national resilience amid global security and economic upheavals. Our economy has entered a low-growth phase of around 1% without adequate preparation to address aging and polarization."

Former Professor Kim warned, "In South Korea, political power exerts a critical influence on the economic ecosystem. The extreme confrontation between conservatives and progressives weakens the government's coordination capabilities, and prolonged high exchange rates could lead to a downgrade in the national credit rating and chronic stagflation (economic stagnation accompanied by rising prices)."

Jung Deok-gu, chairman of the Near Foundation which hosted the forum, emphasized, "Domestic economic agents are shrinking under excessive anxiety and fear. The government must do its utmost to stabilize economic sentiment." Chairman Jung argued, "It is necessary to prevent credit rating downgrades as much as possible, accurately grasp the policy direction of the new Trump administration, prepare effective countermeasures, and implement bold stimulus measures to increase domestic private consumption expenditure."

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