[Inside Chodong] We Can't Move All Our Factories to the U.S.

It couldn't be more blatant. As soon as Donald Trump, the President of the United States, began his second term, he started wielding the "tariff sword" recklessly. He shows no distinction between allies and friends. His intention is not only to impose tariffs on imports to undermine their competitiveness but also to reclaim the manufacturing leadership lost to China. The effect of rallying his support base is a bonus. Everyone is so anxious that no one can stop him.

He opened the tariff fire targeting Mexico, Canada, and China, starting with steel and expanding the scope. From the 4th of next month, a 25% tariff will be imposed on steel and aluminum products imported into the United States. Additional tariffs on automobiles, semiconductors, and pharmaceuticals are also being discussed, heightening the sense of crisis in our industrial sector.

President Trump also effectively rejected Japan Steel's carefully planned acquisition of US Steel, forcing them to take detours through joint ventures and other investments. His determination to revive the "Rust Belt," which lost competitiveness due to imported products, has become clear once again.

Our companies have few options to choose from. Expanding production facilities within the United States seems to be the best current countermeasure. Hyundai Steel's exploration of establishing a steel mill in the U.S. is in the same context. Considering the value chain from steel mills to steel products, parts and materials, and automobiles, this is quite effective. However, from a national industrial perspective, the concern that even the materials business might shift to the U.S. is becoming a reality, which is a serious signal.

If U.S. factories increase, there is a risk of technology leakage and infringement on management autonomy. It is also possible that the U.S. may use production facilities as "hostages" to increase trade pressure. A bigger problem is that this could lead to a contraction in domestic investment and production.

Our manufacturing industry is already facing structural problems such as aging and low birth rates. If companies continue to move overseas under these circumstances, the collapse of domestic manufacturing will accelerate further. In particular, recent discussions on extending retirement age and introducing a four-day workweek need to be viewed from the perspective of maintaining domestic productivity.

Expanding overseas production should not be the only answer. It is time to consider ways to protect domestic manufacturing while maintaining productivity and competitiveness. The government and ruling and opposition parties must prepare proactive support measures to maintain the domestic production base. Speeding up the passage of bills such as the "K-Chips Act," the "Semiconductor Special Act," and the "Korean version of the Inflation Reduction Act (IRA)" is necessary.

Through tax support and deregulation, efforts should be made to help maintain domestic production facilities, and support for research and development (R&D) investment should be expanded to secure long-term growth engines. At the same time, multilateral cooperation and diplomatic efforts to survive in the global market must be pursued.

The U.S. manufacturing reshoring policy is not simply protectionism but a strategic move to reorganize the global supply chain. Our companies must find ways to strengthen global competitiveness rather than merely relocating to the U.S. Continuous implementation plans such as developing breakthrough technologies, adopting automation systems, and expanding AI and robotic processes are also necessary.

There are companies that announced large-scale investments in the U.S. two or three years ago. These are the three battery companies. The factories planned at that time are starting operations one after another this year. They will invest an additional 66 trillion won in the U.S. and elsewhere over the next three years. The new jobs created will reach 57,000. They will become key companies revitalizing the regional economy. This is the fruit of public-private efforts. Should we just sit still and wait for these key companies to come?