New trade chief vows all-out efforts to manage Seoul-Washington trade risks
Summary
Trade Minister Park Jung-sung vowed to make an all-out effort to manage Seoul-Washington trade risks as the global trade order shifts. In his inaugural address, he said tariffs, subsidies, industrial policies, supply chain alliances and export controls are becoming key tools of competition. He also said implementing strategic investment projects with Washington is both the biggest challenge and opportunity in bilateral relations.
Key Facts
- Park said South Korea and the United States are negotiating their first investment project under Seoul’s $350 billion investment commitment made last year as part of a trade deal with the United States.
- He said the U.S. tariff restructuring and push to localize strategic industries are making strategic competition between the United States and China a permanent feature of the global trade landscape.
- Park said trade policy should help semiconductors, nuclear power and shipbuilding strengthen their positions in global supply chains while securing hard-to-replace technologies.
- He said the government should also foster new industries with strong growth potential, including Korean cultural content, consumer goods and industries incorporating artificial intelligence.
- The ministry said South Korea’s annual exports have risen from around $700 billion and are heading toward $1 trillion.
Trade Minister Park Jung-sung delivers his inaugural address at his inauguration ceremony at the Government Complex Sejong, Monday. Courtesy of the Ministry of Trade, Industry and Energy
Korea's new chief trade negotiator has vowed to make an all-out effort to manage risks in the country's trade ties with Washington as the global order undergoes a major transition, the trade ministry said Monday.
In his inaugural address, Trade Minister Park Jung-sung said tariffs, subsidies, industrial policies, supply chain alliances and export controls are emerging as key tools for shaping the global trade order, according to the Ministry of Trade, Industry and Resources.
His appointment comes as the two countries negotiate their first investment project under South Korea's $350 billion investment commitment made last year as part of a trade deal with the United States.
"The tariff restructuring initiated by the U.S. and its push to localize strategic industries are making strategic competition between the U.S. and China a permanent feature of the global trade landscape," Park said.
"Implementing strategic investment projects between Seoul and Washington has emerged as the biggest challenge and, at the same time, the biggest opportunity in bilateral relations."
The minister also said the country's trade policy should create the space for irreplaceable industries, such as semiconductors, nuclear power and shipbuilding, to strengthen their positions within global supply chains, while securing technologies that are difficult to replace.
The government must also foster new industries with strong growth potential in global markets, including Korean cultural content, consumer goods and industries incorporating artificial intelligence (AI), he said.
Driven by the strength of such critical industries, South Korea is seeing rapid growth in annual exports, with the total rising from around $700 billion and heading toward $1 trillion, the ministry said.
"We must not forget the economic security reality that countries with irreplaceable industries are chosen, while countries with only replaceable industries are forced to make tough choices," he added.
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