Seoul, Nov 13 2024-
South Korea will proactively address changes in the global trade environment ahead of the launch of the new US administration, while upgrading existing trade pacts with key partners to maintain upward momentum in exports, the industry ministry said on Wednesday.
The Ministry of Trade, Industry and Energy made the announcement in a report marking the start of the second half of the Yoon Suk Yeol administration, unveiling plans to sustain export growth, which has continued for 13 straight months through October.
In the report, the ministry emphasised that the government will focus on addressing uncertainties surrounding the launch of the new Donald Trump administration, which has hinted at protectionist trade policies, including a minimum 10 percent blanket tariff on imports, reports Yonhap news agency.
“While promptly addressing changes in the trade environment following the US election result, the government will also reach out to U.S. officials to ease uncertainties for businesses investing in the United States,” the ministry said.
South Korea also plans to diversify its trade portfolio by securing additional free trade agreements (FTAs) to mitigate global trade uncertainties.
“Uncertainties in the trade sector have been rising due to geopolitical tensions and the expansion of protectionism, posing lingering challenges to South Korea’s economy and industry,” the ministry report said.
Under the plan, South Korea will seek to upgrade existing FTAs with Britain, Chile and the Association of Southeast Asian Nations, while continuing negotiations for economic partnership agreements with Mongolia, Thailand, Tanzania and Serbia.
Touching on the semiconductor industry, the backbone of Asia’s fourth-largest economy, the ministry said it will implement 17 trillion won ($12 billion) in low-interest loans for semiconductor firms without delay.
The amount is part of a 26 trillion-won comprehensive support package announced by Yoon in May to bolster the key industry amid intensifying global competition.
The ministry added that it aims to officially sign a major nuclear reactor construction deal with the Czech Republic in March next year.
South Korea will also pursue global cooperation for an ongoing excavation project in the East Sea, which could potentially uncover between 3.5 billion and 14 billion barrels of gas and oil, according to the ministry. (Agency)
