South Korea’s new trade chief pledges all-out effort to manage trade risks with the US amid tariff uncertainty and supply chain concerns.
South 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.
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 Trade Risks
Park described the current moment as a critical juncture in bilateral relations.
“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 Strategy
The minister outlined a strategy focused on protecting South Korea’s most critical industries while fostering new growth areas.
Park said the country’s trade policy should create 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.
“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.
The Economic Context
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.
The new trade chief’s focus on managing risks with Washington reflects the growing importance of the US market to South Korea’s economy, even as the two countries navigate complex trade tensions.
The Bottom Line
South Korea’s new trade minister, Park Jung-sung, has pledged to make an all-out effort to manage trade risks with the United States. He identified tariffs, subsidies, industrial policies, and supply chains as key challenges. He emphasized the importance of irreplaceable industries like semiconductors and shipbuilding, while also calling for growth in new sectors. The appointment comes as the two countries negotiate investment projects under a $350 billion commitment.
