S. Korean exporters expect 4.9% drop in US sales amid tariff concerns: survey
South Korean exporters anticipate a nearly 5 percent drop in their shipments to the United States this year if Washington's current tariff policies continue, a business survey showed Monday.
According to the poll commissioned by the Federation of Korean Industries and conducted by Mono Research, 150 export-oriented firms that offered responses among the country's top 1,000 companies by sales forecast an average 4.9 percent decrease in US export volumes in 2025.
By sector, electrical and electronics companies expected the steepest decline of 8.3 percent, followed by automobiles and auto parts at 7.9 percent, petrochemicals and petroleum products at 7.2 percent, and general machinery at 6.4 percent.
In contrast, shipbuilders and pharmaceutical companies project increases in US exports of 10 percent and 1.6 percent, respectively, despite ongoing tariff concerns.
Of the respondents, 81.3 percent said they expect negative impacts from the tariff measures on the businesses of both countries. Another 14.7 percent said the impact would be negative for South Korean firms but beneficial to their American counterparts.
In terms of government responses, 44.6 percent called for negotiations to minimize tariffs, while 13.6 percent urged support for diversifying export markets. Another 13.1 percent recommended expanding the list of duty-free items, and 9.4 percent suggested ensuring that South Korea receives tariff rates equal to those of its global competitors.
"The government should closely monitor tariff-related developments, work to remove non-tariff barriers and develop negotiation strategies that minimize the impact on domestic exporters," a FKI official said. (Yonhap)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Korea Herald
8 hours ago
- Korea Herald
Seoul shares up for 5th straight session on foreign buying
South Korean stocks extended their winning streak to a fifth consecutive session Tuesday on the back of foreign buying, with investors' eyes now on the ongoing trade talks between the United States and China. The local currency lost ground against the US dollar. The benchmark Korea Composite Stock Price Index added 16.08 points, or 0.56 percent, to close at 2,871.85. Trade volume was moderate at 503 million shares worth 14 trillion won ($10.3 billion), with losers outnumbering winners 461 to 429. Foreign investors and institutions net purchased 632.3 billion won and 14.2 billion won worth of local shares, respectively, while retail investors dumped 626.9 billion won. "The KOSPI once surpassed the 2,880 mark earlier in the day thanks to a fifth consecutive session of foreign purchases, but trimmed earlier gains as retail investors moved to take profit following the recent rally," Lee Kyoung-min, an analyst at Daishin Securities, said. Overnight, Wall Street was little changed as investors took to the sidelines before the conclusion of the ongoing trade negotiations between the US and China. The Dow Jones Industrial Average and the S&P 500 closed nearly flat, while the tech-heavy Nasdaq composite rose 0.31 percent. Officials from Washington and Beijing were set to hold the second, and possibly the last, day of their ongoing trade negotiations in London later Tuesday. In Seoul, defense and shipbuilding shares were the biggest gainers. Leading defense firm Hanwha Aerospace jumped 6.36 percent to 936,000 won, and its shipbuilding affiliate Hanwha Ocean soared 4.37 percent to 78,900 won. Other major shipbuilders, HD Hyundai Heavy and HD Korea Shipbuilding, advanced 2.15 percent and 4.35 percent to 427,000 won and 335,500 won, respectively. Top battery maker LG Energy Solution rose 1.23 percent to 288,500 won, and biotech firm Celltrion added 1.25 percent to 162,200 won. Market heavyweight Samsung Electronics lost 1 percent to 59,200 won, while its chipmaking rival SK hynix gained 0.66 percent to 230,500 won. Auto giant Hyundai Motor dropped 0.4 percent to 197,000 won, and its sister Kia went down 0.84 percent to 94,500 won. The local currency was quoted at 1,364.3 won against the greenback at 3:30 p.m., down 7.9 won from the previous session. (Yonhap)
Korea Herald
10 hours ago
- Korea Herald
Korean defense firms eye NATO boost as alliance raises military spending
Hyundai Rotem nears $6b deal to supply 180 K2 tanks to Poland in Korea's largest single arms export The outlook for South Korean defense companies has grown brighter following recent remarks by the head of the North Atlantic Treaty Organization, who called for a 'quantum leap' in collective defense-bolstering momentum for Korean arms exports, which have already been firing on all cylinders. 'Russia could be ready to use military force against NATO within five years,' NATO Secretary-General Mark Rutte warned in a speech at Chatham House in London on Monday. 'China is also modernizing and expanding its military at breakneck speed. Last week, NATO defense ministers agreed on ambitious new targets. The exact details are classified, but we need a 400 percent increase in air and missile defense. We see in Ukraine how Russia delivers terror from above, so we will strengthen the shield that protects our skies,' he said. Rutte added that all NATO member states are expected to meet the alliance's minimum defense spending target of 2 percent of gross domestic product this year. Looking ahead to the NATO summit in The Hague, Netherlands, on June 24 and 25, he said he anticipates leaders will agree to increase spending even further — to 5 percent of gross domestic product — arguing that threats to global security will persist beyond the war in Ukraine. Later that day, Canadian Prime Minister Mark Carney confirmed that Canada would meet NATO's 2 percent defense spending threshold this fiscal year, with plans to accelerate military investments in the years to come. 'In an increasingly dangerous and divided world, Canada must assert its sovereignty,' Carney said in a speech at the University of Toronto. 'We will rapidly procure new equipment and technology, build our defense industrial capacity, and meet our NATO defense commitment this year. Canada will seize this opportunity with urgency and determination.' NATO's push to increase defense budgets follows mounting pressure from US President Donald Trump, who has repeatedly called for a minimum of 5 percent of GDP in military spending among NATO members. These developments are fueling optimism within South Korea's defense industry, as NATO countries ramp up procurement and upgrade their arsenals. According to the International Institute for Strategic Studies, European defense spending rose 11.7 percent year-on-year to reach $457 billion in 2024. If NATO's European members were to raise spending to 5 percent of GDP, that could surge to $800 billion. South Korea has seen record-breaking arms exports in recent years, led by deals with Poland — one of NATO's most aggressive military spenders. In 2022, Poland signed a $44.2 billion deal to purchase a range of Korean-made weapons systems, including Hanwha Aerospace's K9 self-propelled howitzers, Hyundai Rotem's K2 main battle tanks and Korea Aerospace Industries' FA-50 light combat aircraft. Polish President Andrzej Duda openly praised Korean weapons exports at a NATO press conference in March, saying Poland had turned to Korean manufacturers because they could 'supply wonderful modern weapons within just a few months' of the outbreak of Russia's war in Ukraine. Building on this partnership, Hyundai Rotem and the Polish government are nearing a deal worth $6 billion to supply 180 additional K2 tanks to Warsaw. According to defense industry sources, a signing ceremony is expected to take place in Poland later this month. If completed, it would mark Korea's largest single arms export deal to date. Of the 180 K2 tanks, 117 will be manufactured by Hyundai Rotem in Korea, while the remaining 63 will be produced locally in Poland by the state-owned defense company PGZ. 'While Korean defense exports to Poland suggest a stronger foothold for our industry in Europe, both the government and companies need to deepen ties with the region. NATO prioritizes interoperability among its member states' weapons systems,' said an official at a Korean defense firm. 'As local production and partnerships become more important, our companies are actively exploring ways to establish European operations. The Korean government should step up and provide leadership — a control tower — to support the country's defense exports,' the official added.
Korea Herald
10 hours ago
- Korea Herald
Hanwha wins US approval to acquire full stake in Austal
Hanwha Group said Tuesday it has received approval from the US government to acquire up to 100 percent of shares in Austal Limited, a global maritime defense company headquartered in Australia. The clearance was granted on Friday by the Committee on Foreign Investment in the United States, the US agency responsible for reviewing the national security implications of foreign investments. Although Hanwha initially sought to increase its stake in Austal from 9.9 percent to 19.9 percent, the US government authorized the group to acquire up to full ownership. CFIUS stated there were "no unresolved national security concerns" regarding the proposed investment. Hanwha's acquisition aligns with its broader plan to integrate its advanced shipbuilding technologies and defense capabilities with Austal's global operations. 'This approval marks an important milestone that reflects the trust and support we've earned from the US government,' said Michael Coulter, CEO of Hanwha Global Defense. 'It recognizes our technological capabilities and performance in collaboration with the US and its allies. By combining Korean shipbuilding expertise with the US defense industry, we aim to strengthen the competitiveness of American shipbuilding.' The company is also awaiting regulatory approval from Australia's Foreign Investment Review Board to increase its stake in Austal. If successful, Hanwha aims to expand joint projects in both the US and Australian defense markets while contributing to the long-term competitiveness of the global shipbuilding industry.
