OECD transport ministers gather to discuss transport resilience amid global trade uncertainties, climate change
Top transport officials from member nations of the Organization for Economic Cooperation and Development, including South Korea, gathered in Germany on Wednesday to discuss measures to improve the resilience of the transport sector amid challenges involving global trade tensions and climate change.
The three-day 2025 International Transport Forum Summit kicked off in the eastern German city of Leipzig under the theme "Transport Resilience to Global Shocks," bringing together some 1,200 officials from more than 80 countries, including the United States, Germany and Chile.
This year's event will focus on the international community's efforts to respond to supply chain disruptions affecting the transport sector, from maritime to aviation transport, and tackle environmental and security challenges.
A special ministers' roundtable session was also scheduled for discussions on joint efforts to support the swift recovery of Ukraine's transport sector, devastated by its ongoing war with Russia.
"Today, certainty has given way to uncertainty and transport links, connecting the world, are under pressure," ITF Secretary General Kim Young-tae said during a press conference at the Congress Center Leipzig.
Maritime transport moves around 75 percent of global cargo, but global supply chains are becoming "more vulnerable" as they have become "more connected," Kim said.
There are also increasing threats of cyber attacks as many countries are investing heavily in digitizing their transport sectors, Kim added.
Threats involving climate change are also serious, Kim explained, noting that climate risks could disrupt the operations of some 40 percent of ports worldwide.
Asked about the impact of the recent rise of trade protectionism, led by the US Donald Trump administration, Kim said the transport sector is passing through a "very difficult moment" due to tariff issues and other geopolitical tensions and is "definitely seeing impact."
According to a report from global maritime consultancy Drewry, US trade policies will likely lead to a 1 percent drop in global container shipping volume in 2025.
"That's why platforms like the ITF should play a very efficient and productive role in gathering different views from different actors in the world," Kim said.
Meanwhile, South Korean Transport Minister Park Sang-woo was set to attend the ministers' roundtable on transport and climate change at the ITF summit to share the country's policies aimed at promoting the use of public transportation.
Park was also scheduled to hold talks with infrastructure officials from Poland and Ukraine to discuss expanding cooperation on Ukraine reconstruction efforts and a broader range of industrial collaboration in smart city and transport infrastructure projects. (Yonhap)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Korea Herald
3 hours ago
- Korea Herald
Korean battery-makers push President Lee for direct subsidies
Korean firms seek bolder funding as Chinese rivals leverage robust government backing South Korean battery manufacturers are urging President Lee Jae-myung to act as they face slowing electric vehicle demand and intensifying competition from Chinese rivals increasingly dominating global markets. On May 31, three days before the presidential election, Lee wrote in a Facebook post, 'I will recharge the South Korean economy with K-batteries,' underscoring his belief that the battery industry is key to driving Korea's next economic leap. Lee's pledges included strengthening research and development to secure cutting-edge technologies such as all-solid-state batteries; introducing domestic production tax incentives; creating a "battery triangle belt" connecting the Chungcheong, Yeongnam, and Honam regions; increasing battery demand through energy storage systems; and nurturing the battery recycling industry. Calls for IRA-style subsidies While industry insiders are optimistic about the domestic tax incentives, they anticipate a more direct form of financial support from the government. Lee's tax benefit pledge offers tax breaks for companies producing and selling battery products in Korea, similar to the US Advanced Manufacturing Production Credit under the Inflation Reduction Act. However, AMPC also includes options like 'cash refunds' and 'third-party transfers' in addition to tax benefits. 'If we could receive cash returns, we'd have more flexibility to expand investments in global markets — particularly in the US, where rising tariffs on automobiles and parts are already dragging down the EV market,' said an industry source on condition of anonymity. The source emphasized that additional support measures are needed, pointing out that unlike China, which offers subsidies from direct funding to state-led R&D programs, the Korean government has only granted corporate tax credits. Under the Act on Restriction on Special Cases Concerning Taxation, the battery industry is designated a national strategic technology, making it eligible for approximately 15 percent and 30 percent tax credits on facility investments and R&D, respectively. However, these credits apply only to companies that are generating taxable profits. In the first quarter, Korea's top three battery makers — LG Energy Solution, Samsung SDI, and SK On — all reported operating losses, even when factoring in benefits from AMPC. As a result, they are likely ineligible for domestic tax breaks, despite having collectively borrowed 49.6 trillion won ($36.5 billion) for large-scale investments both at home and abroad. Chinese surge Experts suggest that even with the battery sector's strategic importance, direct subsidies from the Korean government remain unlikely. 'Korea has traditionally been wary of direct funding due to the associated risks and concerns over misusing taxpayer money,' said Kim De-jong, a business professor at Sejong University. 'In contrast, while China provides massive subsidies, it often gains substantial control over the company's management and operations.' Kim added that more feasible alternatives to direct subsidies could include offering discounted rates on electricity and water for domestic production facilities. Meanwhile, Chinese battery giants CATL and BYD have strengthened their grip on the global EV market. According to SNE Research, CATL and BYD held market shares of 38.1 percent and 17.3 percent, respectively, as of the latest period, up from the previous year. LG Energy Solution ranked third but saw its share fall from 12.3 percent to 10.2 percent. SK On and Samsung SDI also experienced declines, with market shares dropping to 4.3 percent and 3.3 percent, respectively.
Korea Herald
8 hours ago
- Korea Herald
Seoul shares spike to 11-month high on hopes for policy backup, US-China talks
South Korean stocks rallied to their highest level in 11 months Monday, driven by gains in chip shares amid hopes for new policy measures under the Lee Jae-myung government and upcoming trade talks between the United States and China. The local currency rose against the US dollar. The benchmark Korea Composite Stock Price Index added 43.72 points, or 1.55 percent, to close at 2,855.77, extending its winning streak to a fourth straight session. It marked the highest level since July 16, 2024, when the index finished at 2,866.09. Trade volume was heavy at 528.24 million shares worth 13.61 trillion won ($10.03 billion), with winners beating losers 700 to 200. Foreign investors bought a net 980.0 billion won worth of stocks, while individuals and institutions sold 229.67 billion won and 721.53 billion won worth of stocks, respectively. The index opened markedly higher and maintained its momentum, as investors harbored hopes for eased global trade tensions ahead of a meeting between senior US and Chinese officials set to take place in London later in the day. Expectations have also risen for a set of measures by the Lee government aimed at bolstering the economy. During telephone talks on Friday, Lee and US President Donald Trump agreed to work toward a "mutually satisfactory" agreement on the US' sweeping tariff scheme, Seoul's presidential office said. Semiconductor and auto shares led the upturn of the index. Market bellwether Samsung Electronics rose 1.18 percent to 59,800 won, and its rival SK hynix advanced 2.0 percent to 229,000 won. Top carmaker Hyundai Motor surged 4.32 percent to 197,800 won, and its sister Kia Motors jumped 2.36 percent to 95,300 won. Leading biotech firm Samsung Biologics advanced 1.37 percent to 1.03 million won, and Celltrion gained 1.97 percent to 160,200 won. Leading financial firm KB Financial soared 4.14 percent to 110,700 won, and No. 1 steelmaker POSCO Holdings grew 0.39 percent to 258,000 won. Top online portal operator Naver increased 3.82 percent to 198,500 won, and Kakao, the operator of the country's dominant mobile messenger, spiked 16.03 percent to 51,400 won. But major battery maker LG Energy Solution sank 2.06 percent to 285,000 won, and defense giant Hanwha Aerospace dipped 2.76 percent to 880,000 won. The local currency was quoted at 1,356.4 won against the greenback at 3:30 p.m., up 2.0 won from the previous session. (Yonhap)
Korea Herald
8 hours ago
- Korea Herald
S. Korea-China-Japan cooperation crucial as ‘buffer' as Trump 2.0 roils Asia
APEC summit will serve as springboard for bolstering trilateral coordination, observers say Trilateral cooperation among South Korea, China and Japan has become more essential than ever as a buffer in Northeast Asia fraught with mounting volatility and uncertainty under US President Trump's second term, former high-ranking officials and experts said. Observers from the three countries held the view that Northeast Asia has become the central battleground in the intensifying great-power rivalry between the US and China during a forum hosted by the North-East Asia Research Foundation, a Seoul-based think tank, on Monday. Chung Duck-koo, former minister of trade, industry and energy, underscored that 'further strengthening trilateral relations among South Korea, China and Japan would be highly beneficial,' as Northeast Asia sits at the fault line between the North Korea–China–Russia bloc and South Korea–US–Japan cooperation. 'As a group that intersects both triangular frameworks, our cooperation could serve as a bridge for promoting shared prosperity and safety,' Chung, who serves as the founder and incumbent chair of the NEAR Foundation, said in his opening speech during the forum "The Trump 2.0 Era and its Implications on Northeast Asia." "Such efforts could help ease or neutralize tensions and mitigate sources of conflict in the region." Kim Sung-han, a former national security adviser in the previous Yoon Suk Yeol administration, underscored that "the geopolitical confrontation between North Korea–China–Russia alignment and the ROK–US–Japan partnership is likely to intensify further." The ROK stands for the Republic of Korea, the official name of South Korea. Kim elucidated that the US has been doubling down on its strategic pivot to the Indo-Pacific region from Europe, setting the termination of the war in Ukraine in sight, while curtailing its military engagement in the Middle East. At the same time, China is expected to bolster its strategic partnership with Russia while reinvigorating ties with North Korea. 'In this context, trilateral cooperation among ROK, China and Japan becomes increasingly important to help ease regional tensions and prevent further polarization,' commented Kim, who currently serves as a professor of the Graduate School of International Studies at Korea University. Kim further explained, 'Trump 2.0's foreign policy is likely to push the Northeast Asian order toward a binary confrontation, which could weaken the strategic foundation for trilateral cooperation among ROK, China and Japan." 'Paradoxically, however, in the face of rising tensions, pragmatic and interest-based cooperation among those three countries may become even more necessary,' Kim said. 'As a result, Korea-China-Japan trilateral cooperation could serve as a 'diplomatic shock absorber' that helps ease geopolitical tensions and maintain regional equilibrium.' In his keynote address, Yun Byung-se, former foreign minister under the Park Geun-hye administration, said, 'Dialogue, exchanges and cooperation among South Korea, China and Japan are extremely valuable assets, amid the seismic geopolitical and geoeconomic shifts.' Observers also concurred that the North Korean nuclear challenge underscored the need for tighter Korea-China-Japan cooperation. Yun pointed out that 'North Korea will negotiate from its most advantageous strategic position since the Korean War' if a summit between Trump and North Korean leader Kim Jong-un materializes. 'Depending on the result, another shock may come to the landscape of Northeast Asia,' Yun said. 'Prior coordination between South Korea and the US, and among South Korea, the US and Japan, as well as close consultation with China, will be necessary.' Voicing similar views, Hitoshi Tanaka, former deputy foreign minister in Japan, also underscored that 'especially on pressing issues such as North Korea's nuclear program, close trilateral coordination is imperative.' Observers said this year's Asia-Pacific Economic Cooperation summit — set for late October to early November in Gyeongju, North Gyeongsang Province — will provide a valuable venue to advance trilateral cooperation. 'We understand China's sensitivity regarding Taiwan,' Tanaka said. 'However, just as APEC clearly separates political and security matters, including Taiwan in such frameworks should be considered to demonstrate that economic cooperation can transcend political divides.' The APEC summit will invite leaders from 21 countries in the Indo-Pacific region, including South Korea, the US, China, Japan and Taiwan. 'We hope that the leaders of our three countries — South Korea, China and Japan — will also take advantage of this opportunity to engage in meaningful dialogue,' Chung of the NEAR Foundation said. 'Regardless of the challenges that may arise, South Korea, China and Japan should aim to be in the same boat and remain committed to discussing any issue in depth. In this regard, we must not make the mistake of allowing the past to hinder the future,' Chung added.
