'Seminar on US Presidential Election and Korea-US Economic Cooperation' Held
As the U.S. presidential election approaches this November, an analysis has emerged suggesting that South Korea has contributed to the U.S. 'manufacturing renaissance' through expanded investment in advanced industries. Amid forecasts that protectionist policies, including tariffs, will continue regardless of whether the Democratic or Republican administration takes power, recommendations have been made to further strengthen economic cooperation between the two countries based on increased investment in the U.S.
On the 12th (local time) in New York, at the 'U.S. Presidential Election and Korea-U.S. Economic Cooperation Seminar' jointly hosted by the Korea International Trade Association, the Ministry of Trade, Industry and Energy, The Korea Society, and the Korean Chamber of Commerce in the U.S., such analysis was presented.
Lee In-ho, Vice Chairman of the Korea International Trade Association, stated, "Korean companies' investment in the U.S. has had positive effects such as job creation within the U.S., revitalization of local economies, and expansion of U.S. exports abroad," adding, "We hope the U.S. government will continue to support Korean companies so they can contribute to the U.S. economic growth and the stable establishment of advanced industry supply chains."
There was also a diagnosis that the increase in South Korea's exports to the U.S., which former President Trump, the Republican presidential candidate, is sensitive about due to the expansion of the trade deficit, originated from the growth of foreign direct investment (FDI).
Han Tae-sik, Research Fellow at LG Economic Research Institute, said, "South Korea's recent increase in exports to the U.S. is mainly related to the rise in FDI to the U.S.," and evaluated, "Korean FDI in advanced manufacturing has contributed to the U.S. manufacturing renaissance." Kim Yoon-hee, Senior Executive at Atkins Reality, also said, "Korean FDI to the U.S. has increased by 371% since 2012," adding, "Korea's expanded investment in the U.S. has contributed to U.S. employment and the expansion of battery, semiconductor, and automobile production, benefiting the U.S. economy."
Han emphasized, "The Korea-U.S. relationship must now move to the next stage," and stressed, "We need to expand partnerships in new industries, technology, human resources, and the economy."
There was also an observation that regardless of which administration takes office in the U.S. presidential election less than two months away, the U.S.-first policy stance will be strengthened.
David Park, attorney at Arnold & Porter, predicted, "The U.S. Congress will influence the adoption of more aggressive trade measures regardless of which administration takes office." The authority over U.S. trade policy lies with Congress, not the administration, and both the Democratic and Republican parties emphasize manufacturing restoration and America-first policies.
It was expected that under the Democratic presidential candidate Vice President Kamala Harris, South Korea could strengthen partnerships with the U.S. in supply chains and climate issues. If former President Donald Trump, the Republican candidate, wins, it is likely that trade pressures such as universal tariffs will lead to issue-by-issue negotiations.
Attorney Park said, "Vice President Harris values alliances and considers South Korea an important strategic partner," adding, "We must continuously seek opportunities to cooperate with the U.S. on supply chain security, carbon and climate issues, and concerns about China." He continued, "If former President Trump takes office, he will implement additional trade measures such as universal tariffs and attempt to weaken the Inflation Reduction Act (IRA). Negotiations with Trump will likely need to be conducted through individual deals. Tariff and quota issues will remain important," he predicted.
The seminar was attended by more than 70 government, business, and academic figures from both Korea and the U.S., including Jung In-kyo, Director General for Trade Negotiations at the Ministry of Trade, Industry and Energy, Vice Chairman Lee In-ho, and Thomas Byrne, Chairman of The Korea Society.
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