South Korea Acting President: "Emergency Car Support Plan to Be Announced Next Week... Political Cooperation Is Crucial"

Discussing Countermeasures Against the U.S. 25% Tariff
Korea: "A Significant Burden on Our Export-Driven Economy"
Requesting Bipartisan Cooperation for the National Interest

Han Duck-soo, Acting President and Prime Minister, announced on the 3rd that he will immediately promote the visit of Jung In-kyo, Chief Negotiator for Trade, to the United States in response to the U.S. imposing a 25% tariff. Emergency support measures will be prepared by next week for the automobile industry, which is expected to suffer the greatest damage.

Acting President and Prime Minister Han Duck-soo is holding an Economic Security Strategy Task Force meeting at the Prime Minister's official residence in Seoul on the 3rd. Photo by Yonhap News

On the same day, Han held the 3rd Economic Security Strategy Task Force (TF) meeting at the Prime Minister's official residence in Samcheong-dong, Jongno-gu, Seoul, stating, "This U.S. tariff measure is a turning point that changes the international free trade order and the global supply chain structure itself, reshaping the world economic order," and added, "It could pose a significant burden on our export-driven economy."

Han emphasized, "In this crisis situation, the government will make every effort in negotiations with the U.S. to minimize damage to our companies," and said, "We will immediately promote the visit of the Chief Negotiator for Trade to the U.S. and pursue close consultations with the U.S. at all levels, while focusing on mutually beneficial solutions based on the Korea-U.S. alliance and economic and trade cooperation."

He continued, "Through public-private communication such as the Economic Security Strategy TF and industry-specific relay meetings, the government and the private sector will continue 'coordinated efforts' as one team."

Han stated, "Along with close negotiations with the U.S., it has become an important task to transform our industrial and economic structure in line with the future restructured trade order," adding, "In the short term, a decrease in exports to the U.S. is expected, and in the long term, concerns include domestic industrial hollowing-out and damage to the industrial ecosystem, so the government will promptly prepare countermeasures."

He also said, "For the automobile industry, which will be subject to tariffs starting today, we will announce emergency support measures by next week," and added, "The relevant ministries will also quickly prepare support measures for vulnerable sectors and industries such as small and medium-sized enterprises."

Furthermore, he added, "Taking this U.S. tariff measure as an opportunity, we will fundamentally improve the structure of our industry and drastically rationalize unreasonable systems and practices."

Han requested, "Political cooperation is essential to alleviate the pain of our companies facing difficulties both domestically and internationally, such as tariff measures and sluggish domestic demand," and asked, "I request bipartisan cooperation from the perspective of national interest to overcome this trade crisis."

Earlier, on the 2nd (local time), the U.S. government officially announced that it would impose a 25% reciprocal tariff on all products produced in Korea and imported into the U.S. For automobiles, the 25% tariff took effect at 12:01 a.m. Eastern Time on the same day (1:01 p.m. Korean time on the 3rd).