Participation of 11 Overseas Branches... Discussion on Export-Import Conditions Assessment and Trade Expansion Measures
Jang Manki, Executive Vice Chairman of the Korea International Trade Association
[Asia Economy Reporter Park Sun-mi] The Korea International Trade Association (KITA) convened its 11 overseas branches to hold an emergency trade countermeasure meeting to discuss measures to resolve the trade deficit.
According to KITA on the 7th, Vice Chairman Jeong Manki presided over the ‘Emergency Major Market Trade Countermeasure Meeting’ and said, "Energy imports reached $143.1 billion until last month, a 53.2% surge compared to the previous year, resulting in a trade deficit of $28.9 billion, but there are new opportunities." He added, "We must maximize the utilization of the high economic growth of oil-exporting countries with trade surpluses to seize new opportunities."
He explained, “There is a need to create a second Middle East boom by expanding industrialization investments and participating in the construction of nuclear power and renewable energy infrastructure in preparation for the post-oil era.” He also added, “It is necessary to prepare measures to actively support Korean companies’ expansion into Middle East project markets through providing local project information from the UAE branch and financial cooperation with institutions such as the Korea Trade Insurance Corporation and the Export-Import Bank.”
Regarding India, Vietnam, and Indonesia, he emphasized the need to actively utilize their high growth rates and purchasing power despite the global economic downturn. For the European Union (EU), since there is a possibility of introducing a system similar to the U.S. Inflation Reduction Act (IRA) subsidies for electric vehicles, KITA stressed the importance of strengthening monitoring and proactive responses in cooperation with local companies and government agencies.
In response, Han Chang-hoe, head of the Dubai branch, said, “This will be a great boon for our infrastructure companies strong in construction, plant, and engineering sectors, and a ‘second Middle East boom’ can be expected.” He added, "Recently, Middle Eastern countries have been implementing restrictions on foreign companies without local subsidiaries from participating in bids and mandatory priority employment of nationals, so we plan to continue cooperation with Middle Eastern policy authorities.”
Lee Dong-won, head of the Ho Chi Minh branch, said, “Many local companies are facing difficulties as the revised HS Convention tariff laws effective from 2022 have not been reflected, preventing them from benefiting from RCEP preferential tariff rates,” and called for “measures to resolve these difficulties.” Park Hyung-sun, head of the Jakarta branch, said, "Long-term national projects such as the new capital construction project will be a great opportunity for domestic construction, ICT, and infrastructure companies with technology and experience,” and added, “However, delays in visa issuance and complicated import permit procedures after COVID-19 are obstacles to our companies’ entry, so it is necessary to use government consultative bodies to resolve corporate difficulties.”
Lee Sang-jun, head of the New York branch, said, "Wage increases and worsening labor shortages after COVID-19 are problems,” and requested, “Especially for the Korean professional visa quota bill, which is a core difficulty for our companies, active outreach activities are needed for its prompt passage in Congress.” Park Kang-pyo, head of the Tokyo branch, mentioned the sharp depreciation of the yen and said, “Our companies should strengthen foreign exchange hedging, including purchasing foreign exchange fluctuation insurance when trading with Japan, and enhance credit investigations for both new and existing clients.” He added, “For B2C, measures to reduce transportation costs using local logistics facilities should be established.”
Meanwhile, KITA decided to hold emergency major market trade countermeasure meetings quarterly to continuously collect difficulties and suggestions from local companies. A KITA official said, "By utilizing overseas branches and local networks, we plan to proactively check potential risks and provide full support with relevant ministries and agencies to ensure our companies do not face difficulties."
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