"Post US Election 'Three Major Risks: Economy, Inflation, Fiscal... Monitoring Policy Changes'"

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"Monitoring Business Environment Changes After US Presidential Election"

Depending on the outcome of the U.S. presidential election, three major risks?economic recession, downward price rigidity (the phenomenon where prices that should fall do not), and deterioration of federal government finances?may continue, prompting companies to closely monitor developments. It is pointed out that the business environment could change significantly due to U.S. trade and commercial policies, technology regulations, and tax benefits.

The Korea International Trade Association (KITA) and the American Chamber of Commerce in Korea (AMCHAM) announced on the 29th that they will jointly hold a "U.S. Investment and Market Entry Seminar" at COEX in Samseong-dong, Gangnam-gu, Seoul, in the afternoon. About 300 people, including James Kim, AMCHAM Chairman and CEO, Kim Ki-hyun, Director of KITA’s International Cooperation Headquarters (Executive Director), Joy Sakurai, Charg? d’Affaires at the U.S. Embassy in Korea, and representatives of companies entering the U.S. market, are expected to attend.

James Kim, AMCHAM Chairman and CEO, said in his opening remarks, "As Korean companies’ interest in investing in the U.S. market is higher than ever, the U.S. recognizes these Korean companies as valuable 'customers' and I am confident they will always receive good treatment. Going forward, AMCHAM will continue to support Korean companies to successfully land in the U.S. market and strive to create a stable and predictable policy environment."

Kim Ki-hyun, Director of KITA’s International Cooperation Headquarters, said, "This year, bilateral trade volume surpassed $100 billion (approximately 140 trillion KRW) for the first time in the first half, setting a record high. Since U.S. trade and commercial policies, technology regulations, and tax benefits are expected to change significantly depending on the U.S. presidential election results, our companies need to prepare accordingly."

Charg? d’Affaires Joy Sakurai said in her congratulatory remarks, "The Korea-U.S. investment relationship is not just a two-way street but a superhighway. Through this, it creates jobs, drives innovation, and generates opportunities for both countries."

Seminar participants will discuss factors to consider when investing in the U.S., U.S. economic outlook, and election trends.

Yoon In-gu, Deputy Director of the International Finance Center, is scheduled to deliver a keynote speech titled "Current Status and 2025 Outlook of the U.S. Economy," advising that even if the U.S. base interest rate falls, companies should monitor economic, inflation, and fiscal risks.

Deputy Director Yoon said, "The U.S. base interest rate is likely to decrease by 25 basis points (1bp = 0.01 percentage points) next month and again in December, with an additional 100bp drop expected next year, which should positively impact business activities in the U.S."

He added, "However, three major risks remain in the U.S. economy: a sharp economic recession, downward rigidity of core inflation, and deterioration of federal government finances. We must closely watch how policy changes after the U.S. presidential election will affect both the U.S. and global economies."

Kang Woo-chang, Associate Professor at Korea University, is expected to urge companies to carefully observe the election results in his presentation titled "U.S. Presidential Election Trends and Key Points to Watch." Professor Kang noted, "There is a possibility that the official election results announcement may be delayed due to recount issues."

In the corporate mentoring session, presentations will be given on U.S. visa management (Nam Ji-young, U.S. Attorney at Immigration Law Firm Daeyang), supply chain risk management (Jin Jeong-hwan, General Manager of Korea Sales at United Parcel Service Korea), and site selection and factory establishment considerations when entering the local market (Kim Yoon-hee, Senior Executive Director of Strategic Business Development at Akins Realize).