Gyeongbuk Chamber of Commerce and Industry, 2025 Survey on Trade Risk Impact in Gyeongbuk Region

Concerns Over Worsening Business Environment...
Urgent Need for Measures Against Exchange Rate Volatility

The Gyeongbuk FTA Trade Promotion Center and the Gyeongbuk Eastern FTA Trade Promotion Center conducted a survey on the 'Impact of Trade Risks in 2025' targeting 239 companies in the Gyeongbuk region. According to the survey, companies cited increasing domestic and international uncertainties and sharp exchange rate fluctuations as major risk factors, calling for active government intervention.

Gumi Chamber of Commerce and Industry building./Photo by Byunggun Kwon

◆ Management Environment Expected to Worsen

45.2% of respondents Regarding the business environment this year, 45.2% of companies responded that it would "worsen." 39.7% said it would be "similar to last year," while only 15.1% expected "improvement." In particular, regarding investment plans, a conservative management stance was evident, with 28% indicating "reduced or no domestic investment plans" and 38.5% indicating "reduced or no overseas investment plans."

◆ External Risks: Exchange Rate Volatility and Global Economic Slowdown

Companies identified 'sharp exchange rate fluctuations' (25.3%) and 'global economic slowdown' (19.2%) as the biggest external risks. The higher the dependence on imports, the greater the burden from exchange rate volatility, and the global economic slowdown is also expected to lead to decreased sales.

◆ 2025 Global Economic Growth Forecast: 3.1% Korea Economic Growth Forecast: 1.6%

Trade Risks Expected to Increase if Trump is Re-elected In the event that former President Trump is re-elected in the US presidential election, companies viewed 'universal or reciprocal tariff imposition' as the greatest risk factor. Accordingly, there was significant concern about "decreased sales due to weakened export competitiveness" (48.2%). On the other hand, 43.5% responded that the impact would be "similar to 2024."

As countermeasures against strengthened trade law regulations and the possibility of FTA renegotiations, companies are most considering 'cost reduction' (32%). Other main strategies include exploring alternative markets, focusing on existing markets, and restructuring supply chains. No companies were found to be considering establishing production bases in the US.

◆ Government Support Measures: Exchange Rate Stabilization as Top Priority

Companies cited 'exchange rate stabilization' (20.5%) as the top policy priority that the government should focus on amid the uncertain trade environment. They also requested major support measures such as corporate tax reductions and assistance in pioneering new markets. 2024 KRW/USD exchange rate: 1,310.90 KRW (January) → 1,472.50 KRW (December) (the highest level since the foreign exchange crisis) Average exchange rate for January-March 2025: 1,449.78 KRW (based on E-Nara Index)

◆ Limits to Corporate Response: Government and Local Government Support Essential

Yoon Jaeho, Chairman of the Gyeongbuk Chamber of Commerce and Industry Council and the Gumi Chamber of Commerce and Industry, emphasized, "Responding to trade risks is a challenge that individual companies cannot handle alone," adding, "The government, local governments, public institutions, and associations must cooperate to provide practical support."

Kim Jaehyun, Director of the Gyeongbuk FTA Trade Promotion Center, stated, "This year, in addition to existing consulting and education, we plan to strengthen support for Gyeongbuk companies by expanding the Trade Promotion Agency Council, customized briefings, and on-site counseling sessions."

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