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Korea Herald
28-05-2025
- Business
- Korea Herald
S. Korean, Japanese biz leaders agree to boost cooperation in AI, chips, CPTPP entry
Business leaders of South Korea and Japan on Wednesday agreed to expand bilateral cooperation in artificial intelligence, semiconductors and other key sectors while supporting Seoul's efforts to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). The agreement was part of a joint statement adopted during the 57th South Korea-Japan Business Conference held in Seoul, which brought together some 300 business and economic representatives from the two countries for an annual two-day meeting that began Tuesday. "On the occasion of the 60th anniversary of the normalization of diplomatic ties (between Seoul and Tokyo), we reaffirm the trust and friendship built over the years and hope to collaborate for the bright future of South Korea, Japan and the world," the Federation of Korean Industries said in a joint statement. Specific areas of cooperation include carbon neutrality, hydrogen energy, AI and semiconductor industries, as well as the bio and health care sectors. They also agreed to collaborate on addressing social challenges, such as the two countries' low birth rates and aging populations. On South Korea's bid to join the CPTPP, the participants agreed to support preliminary measures by relevant organizations to facilitate the move. The CPTPP is a major Indo-Pacific trade pact comprising 12 countries, including Japan, Australia, Canada, Britain and Vietnam, that together accounted for about 15.2 percent of global trade as of 2019. Business leaders from South Korea and Japan have voiced shared concerns over the United States' growing protectionist stance and the escalating US-China rivalry. In response, they emphasized the importance of strengthening bilateral economic cooperation between the two countries. At a press conference following the release of the joint statement, Kim Yoon, co-chairman of the Korea-Japan Economic Association, said, "Trade pressure from the new US administration and China's rapid technological advancement have emerged as major challenges for both Korea and Japan." There appear to be some views suggesting the two countries consider a joint response to US trade pressure, he added. His Japanese counterpart, Yutaka Aso, vice chairman of the Japan-Korea Economic Association, said, "Korea and Japan are not rivals, but partners who need to build a solid foundation for cooperation," citing a growing sense of urgency in both countries over US President Donald Trump's "America First" policies and the prospect of a more assertive China. Asked if he had a message for South Korea's incoming administration, Aso urged the new government to prioritize Korea-Japan relations and push forward necessary reforms. (Yonhap)
Korea Herald
27-05-2025
- Business
- Korea Herald
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)
Korea Herald
26-05-2025
- Business
- Korea Herald
Korean exporters expect 4.9% drop if Trump tariffs persist: survey
South Korean exporters expect a 4.9 percent drop in exports this year if US President Donald Trump's tariff policies continue, according to a new survey released Monday. The survey was conducted by local pollster Mono Research and commissioned by the country's major business lobby, the Federation of Korean Industries. It polled 150 export-oriented companies among the country's top 1,000 companies by revenue. Findings suggest that these companies expect their export volume will decrease by 4.9 percent this year compared with the previous year, assuming current US tariff measures stay in effect. The figure represents the average forecast across the surveyed companies. By sector, companies that produce electronics projected the steepest decline at 8.3 percent, followed by automobiles and parts with a 7.9 percent drop, petroleum products at 7.2 percent, general machinery at 6.4 percent, semiconductors at 3.6 percent and steel at 2.8 percent. Meanwhile, shipbuilders and biopharmaceutical companies projected an increase in their overseas shipments, by 10 percent and 1 percent, respectively, despite the tariff measures. The survey also found that if US tariff policy remains unchanged, companies expect their overall revenue and operating profits to fall by 6.6 percent and 6.3 percent, respectively, on average. Around 81 percent of respondents said US tariff policies would negatively affect both American and Korean businesses, while 14.7 percent said the tariffs would hurt Korean companies but benefit their US counterparts. Asked what the biggest management challenges are, 24.9 percent cited increased uncertainty due to frequent tariff policy changes by the Trump administration, followed by a global economic slowdown stemming from tariff tensions with 24 percent, declining US exports with 18.8 percent, heightened currency fluctuation risk with 17.5 percent and potential damages due to dumping by China. As a countermeasure, 26.9 percent of companies said they are diversifying export markets as their top response, while 19.8 percent said they are restructuring their global production network. Other strategies include strengthening foreign exchange risk management with 16.5 percent and launching collective industry responses with 15.1 percent. In terms of desired government action, 44.6 percent of respondents urged negotiations with Washington to reduce tariffs, while 13.6 percent called for support for diversifying export markets. Another 13.1 percent demanded broadening the list of duty-free items and 9.4 percent suggested ensuring that South Korea receives tariff rates equal to other competing countries. Surveyed on how long the uncertainty in the global trade industry will persist, 42.7 percent predicted six months to one year, followed by 18 percent estimating one to two years. 'Despite a temporary tariff reduction agreement between the US and China, the uncertainty on tariff policies remains,' said Lee Sang-ho, head of FKI's economic and industrial research department. 'The government must closely monitor tariff-related developments, work to remove nontariff barriers and develop negotiation strategies to minimize damage to Korean firms.
Korea Herald
20-05-2025
- Business
- Korea Herald
South Korean business leaders meet Macron to deepen bilateral ties
South Korean business leaders met with French President Emmanuel Macron in Versailles, France, on Monday to explore opportunities for deepening bilateral economic cooperation, the Federation of Korean Industries said. The meeting was held during the 'Choose France Summit,' President Macron's flagship initiative to attract foreign investment, at the Chateau de Versailles near Paris. Now in its eighth year, the summit brought together more than 100 global business leaders at Macron's invitation to discuss France's reindustrialization and opportunities for increased international investment. According to the FKI, Korea was the only country granted an exclusive, country-to-country business roundtable with Macron during this year's summit. The Korean delegation was led by Ryu Jin, chair of the FKI and CEO of the leading defense exporter Poongsan Group. It included senior executives from a broad range of industries: Sohn Kyung-shik, chair of CJ CheilJedang; Walter Cho, chair of Korean Air and Hanjin Group; Chang Jae-hoon, vice chair of Hyundai Motor Company; Hur Jin-soo, president of SPC Group and Oh Jung-kang, CEO of Enchem. President Macron was joined by senior French government officials and business leaders, including Foreign Affairs Minister Jean-Noel Barrot, Air Liquide CEO Francois Jackow, BNP Paribas Chair Jean Lemierre and Wouter van Wersch, executive vice president international at Airbus. 'It is encouraging to see trade between Korea and France continuing to grow ahead of next year's 140th anniversary of diplomatic relations,' said Ryu. 'I hope today's meeting will serve as a springboard for deeper cooperation in promising fields, such as artificial intelligence and decarbonization.' To build on the discussions, Ryu invited President Macron to visit Korea next year for the anniversary celebration. Following the roundtable, business leaders from both countries held one-on-one meetings with government officials to explore partnership opportunities in sectors including decarbonization and defense. The FKI delegation will continue its engagement the following day by hosting the "Korea-France Business Dialogue for the Future," focused on expanding collaboration in areas such as aerospace, mobility and startups.
Korea Herald
19-05-2025
- Business
- Korea Herald
Korean shipbuilders urged to target US vessel demand of up to 448 ships by 2037
Korea's shipbuilding industry needs to undertake strategic moves to capture opportunities in its cooperation with the US, as the country's demand for ships could reach up to 448 vessels by 2037, according to a report released by one of Korea's major business lobbies. The Federation of Korean Industries on Sunday released a study conducted by professor Ryu Min-cheol of Korea Maritime & Ocean University. The study explores strategic ways Korea can cooperate with the US, as the country seeks to rely on allies like South Korea and Japan to meet near-term ship demand while aiming to build vessels domestically to revive its shipbuilding industry. Reflecting this initiative, US Navy Secretary John Phelan and US Trade Representative Jamieson Greer recently met with top executives of Korea's leading shipyards — HD Hyundai Heavy Industries and Hanwha Ocean — during their visits to Korea. According to the report, the US is projected to order between 403 and 448 vessels by 2037, including over 100 container ships, 74 liquefied natural gas and liquefied carbon dioxide carriers, up to 10 icebreakers, 175 naval combat and support ships and 67 auxiliary vessels for wartime operations. These projections are based on US maritime strategies laid out by the Donald Trump administration and US Congress, the report said. The US aims to expand its commercial fleet beyond 250 vessels and seeks to close the gap with China's naval power, which currently fields about 400 naval vessels compared to the US' 287 — a disparity expected to widen if current trends continue. The report also recommends that Korea adopt differentiated strategies based on vessel types in its cooperation with the US. For commercial vessels, where demand for smaller ships exists, the report recommends that Korea develop support policies for small and medium-sized shipbuilders to help expand their production in the US. For naval vessels, where the US is expected to spend up to $1 trillion over the next 30 years, the report suggests that Korea build trust through maintenance projects and focus on noncombat vessels, such as procurement and support ships. When it comes to vessels featuring next-generation technologies, such as large-scale carbon dioxide carriers, liquefied hydrogen carriers and unstaffed vessels, the report calls for the creation of a joint Korea-US fund to support development and commercialization. 'South Korea and the US need to jointly develop a strategy to secure workforce and supply chains when Korean shipbuilders work to expand their presence in the US,' said Ryu, the report's author. 'They should also maintain ongoing dialogue to ensure that US support policies for Korean shipbuilders remain consistent.'
