"Strategies Needed to Respond to Economic Policy Changes Following US Presidential Election Results"

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[Asia Economy Reporter Dongwoo Lee] The Federation of Korean Industries (FKI) announced on the 5th that it held a "2021 U.S. New Administration Inauguration and Implications for Korea Roundtable" at the Yeouido Conference Center. This roundtable was organized to review policy changes in the Korean economy following the results of the U.S. presidential election.

Huh Chang-soo, Chairman of the FKI, stated, "Regardless of who wins the U.S. presidential election, the importance and solidity of the Korea-U.S. alliance remain unchanged, especially during turbulent times such as the COVID-19 pandemic. Since the Korea-U.S. relationship has a significant impact on our economy, the Korean business community must promptly prepare response strategies for economic policy changes following the U.S. election results."

Park Jin, a member of the People Power Party, emphasized in his congratulatory speech, "Whether the second term of the Trump administration begins or the new Democratic Biden administration takes office, the new Cold War between the U.S. and China, stemming from trade wars and technological hegemony competition, is expected to continue for the time being. In this severe international situation, to protect our national interests and find a path for survival, we must choose a wise strategy that minimizes risks by communicating with China based on the Korea-U.S. alliance."

Yoon Yeo-jun, head of the Americas team at the Korea Institute for International Economic Policy (KIEP), analyzed in his presentation that if Democratic presidential candidate Joe Biden is elected, the policy of putting America first will remain, but he will revive multilateralism by leading reforms of the World Trade Organization (WTO). Yoon predicted, "Rather than imposing mutual tariffs with China, cooperation with allied countries will be used to regulate China's unfair practices."

Conversely, if President Donald Trump succeeds in his re-election, unilateral trade measures under presidential authority and existing tariff measures are expected to continue. He said, "In a situation where a tough China policy is maintained, issues such as the technological hegemony war and U.S.-China decoupling will be emphasized."

Yoon argued that ultimately, Korea should organize its stance on WTO reforms, which will be discussed, and prepare for the possibility of rejoining the U.S. Trans-Pacific Partnership (TPP), carefully weighing Korea's practical interests to establish a trade strategy.

During the panel discussion on U.S. affairs moderated by former National Assembly member and Korea-U.S. FTA chief negotiator Kim Jong-hoon, various solutions were presented focusing on Korea's best response strategies amid changes in Korea-U.S. trade issues, North Korea issues, diplomacy, security, and U.S.-China relations scenarios.

Paul Gong, a senior researcher who served as a policy advisor in the U.S. Senate, forecasted about this election, "It was the most unpredictable election ever, and considerable confusion is likely to continue for some time, which will damage the U.S.'s standing on the international stage."

Kim Bong-man, head of international cooperation at the FKI, diagnosed, "Unlike previous elections, this U.S. election is expected to cause prolonged confusion due to societal division and its aftermath, so our companies and economic circles will need scenario-based countermeasures."

Meanwhile, the FKI plans to hold the 32nd Korea-U.S. Business Council General Meeting, a high-level private economic cooperation channel jointly hosted with the U.S. Chamber of Commerce, over two days on the 17th and 18th at the FKI Conference Center. The meeting will cover Korea-U.S. trade cooperation tasks, ESG (environment, social, and governance) management, Korea-style New Deal, and business opportunities, with government officials from trade and diplomatic sectors and businesspeople from both countries expected to attend.

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