Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
Korea remains vigilant as Trump revokes Bidenomics
Acting President Choi Sang-mok presides over a meeting of ministers and presidential aides in charge of foreign and trade affairs at Government Complex Seoul, Tuesday. Joint Press Corps
By Park Jae-hyuk
Washington feared to reconsider trade pact with Seoul
Korea’s top economic policymakers have closely monitored the potential impacts of U.S. President Donald Trump’s series of executive orders, most of which aim to put a stop to his predecessor’s policies.
Although the new president did not make any comments specifically about Korea on inauguration day, his energy and trade policies are expected to pose a threat to major conglomerates and exporters here, as well as to the free trade agreement (FTA) between the two countries.
The government said Tuesday that acting President Choi Sang-mok, who also serves as prime minister and finance minister, has ordered ministries to brace for Trump's tariffs and the nullification of former U.S. President Joe Biden’s policies that were supportive of the renewable energy industry.
The acting president expressed concerns about the establishment of the External Revenue Service, which will be tasked with collecting tariff revenue and the withdrawal of the electric vehicle (EV) mandate.
“By maximizing opportunity factors and minimizing risk factors in the wake of the initiation of the new U.S. administration, the government will strengthen economic stability,” Choi said during a meeting with ministers and presidential aides in charge of foreign and trade affairs.
“Working-level officials have already been sent to Washington to figure out the specifics of the forthcoming measures and to communicate with the U.S. government,” he added.
Trade, Industry and Energy Minister Ahn Duk-geun, third from right, speaks at the Trade Tower in Seoul, Tuesday, during a joint meeting between the private and public sector to discuss countermeasures against the new U.S. government's trade policies. Yonhap
On the same day, Trade, Industry and Energy Minister Ahn Duk-geun also talked with Korea International Trade Association Chairman Yoon Jin-sik about ways to create an environment favorable to exporters in light of Trump’s inauguration.
“Pangovernmental countermeasures will be taken against the new U.S. government’s policies,” Ahn said during a forum hosted by the association.
The ministry convened a separate meeting between the private and public sectors that day to discuss countermeasures against the “America First” trade policies.
These efforts come as Trump said in his inaugural address on Monday (local time) that he would end the Green New Deal and EV-friendly policies. With a declaration of a national energy emergency, he also made it clear that the United States will accelerate oil and gas drilling.
Later that day, the new U.S. president signed executive orders to pull his country out of the Paris climate agreement and revoke Biden’s plan to make 50 percent of new vehicle sales electric. In particular, he called for considering the elimination of what he termed as “unfair” subsidies for EVs.
Additionally, Trump signed a memorandum ordering the U.S. Trade Representative (USTR) to review existing trade deals, while reiterating his promise to impose universal tariffs on all imports soon and threatening to start levying 25 percent tariffs on goods from Canada and Mexico next month.
The Korea-U.S. FTA appears to be one of the pacts subject to review, given the increasing trade imbalance between the two countries. Last year, Korea saw a record surplus of $55.7 billion in its trade with the U.S.
“The USTR shall review existing U.S. trade agreements and sectoral trade agreements and recommend any revisions that may be necessary or appropriate to achieve or maintain the general level of reciprocal and mutually advantageous concessions with respect to FTA partner countries,” the memorandum read.
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Despite the growing concerns about Trump’s economic policies, the government expressed optimism about the growth of the shipbuilding industry, considering his plan to rebuild the U.S. Navy in collaboration with allies.
“The government will take advantage of opportunity factors, such as bilateral cooperation in the shipbuilding sector, in which Trump showed his interest,” the acting president said.
Buoyed by the rosy outlook for shipbuilders, the stock prices of major shipbuilding companies hit a 52-week high on Tuesday. Korean aerospace companies also saw a sharp rise in stock prices, driven by Trump’s pledge to send American astronauts to Mars as part of the country’s "manifest destiny" in space.
In contrast, stock prices of Korean EV battery firms and companies in the renewable energy sector plummeted due to the rollback of U.S. climate policies.