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[Contribution] Defining the 'yard' in the age of economic security
President of Chey Institute for Advanced Studies
As globalization gives way to a new era of economic security, the phrase 'small yard, high fence' has become a strategic touchstone. Before building ever-higher fences — through tariffs, export controls and other protectionist tools — we must first define the yard we intend to protect. For the United States and its allies, including South Korea, this requires not just a defensive posture, but strategic clarity on what technologies and industries are truly worth safeguarding and growing.
The strategic turn
Popularized by former US National Security Advisor Jake Sullivan, the concept of 'small yard, high fence' traces back to the first Trump administration, when Chinese tech firms like Huawei and ZTE were targeted. Now, with President Donald Trump's return to office, protectionism has been re-energized — not just as policy, but as a political and industrial rallying cry. At stake is the revival of American manufacturing and the middle class.
Yet amid rising fences, a deeper question remains: What exactly belongs in the yard?
Three principles for defining the yard:
Strategic necessity
Certain capabilities — like shipbuilding or steelmaking — are vital for national defense and economic independence, even if they lack short-term commercial efficiency. The US shipbuilding sector, despite the Jones Act, has declined precipitously. The UK, too, is scrambling to save its last virgin steel facility. These cases illustrate how easily core industrial capacity can erode without clear strategic prioritization.
Honest assessment of enduring strengths
The US leads in software, cloud, semiconductor design and academic research. But it lags in advanced manufacturing, battery supply chains and rare earth processing. Protecting sectors purely out of nostalgia or overlooking structural weaknesses undermines strategic credibility.
And allied coordination
No country can secure the future of critical technologies alone. Deep cooperation is essential, especially in areas like AI, small modular reactors, biotech and semiconductor packaging. For the US, Japan and South Korea, aligning comparative strengths and building shared 'yards' will be key to success.
A high fence only matters if it surrounds something worth defending. Over-expanding the yard risks incoherence; over-tightening the fence risks stagnation and diplomatic backlash. The ultimate goal should be a resilient and forward-looking ecosystem — nurtured through investment, innovation and alliances.
True national resilience begins not with exclusion, but with clarity of purpose. The US and its allies must focus not only on what to protect, but what to grow. A yard well-defined and well-tended needs no towering fence to justify its value.
Kim Yoo-suk is president of Chey Institute for Advanced Studies, a think tank affiliated with SK Group. -- Ed.
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