Confirmation Hearing for Industry Minister Nominee
U.S. Tariff Negotiations: "National Interest Comes First"
Sensitive Items to Be Protected, but Technical Adjustments Possible
On July 17, Kim Jeonggwan, the nominee for Minister of Trade, Industry and Energy, identified export expansion, industrial transformation, energy security, and balanced regional development as his core priorities, stating, "We will proactively respond to the AI and energy revolutions."
In his opening remarks at the National Assembly's Trade, Industry, Energy, SMEs and Startups Committee confirmation hearing that day, Kim said, "Export conditions are deteriorating due to U.S. tariff measures and the spread of protectionism," and added, "Through organic linkage among industrial, trade, and energy policies, I will support our companies so they can survive and advance in the rapidly changing global competition."
He specifically addressed the recent U.S.-China technological hegemony competition, the strengthening of U.S. protectionism, and China's technological catch-up, noting, "The existing free trade order is not functioning normally," and diagnosing, "A fundamental restructuring of industry centered on AI and energy transition is inevitable."
Kim stated, "We will once again make exports and investment the pillars of growth," adding, "We will diversify export items and markets, expand export infrastructure such as finance and marketing, and usher in the era of $1 trillion in exports." To this end, he also proposed establishing an 'Industry and Trade Strategy Meeting' that reflects the voices of the industry and the field.
In written responses to questions, Kim provided more detailed explanations regarding trade policy direction, measures for sensitive items, and support plans for advanced industries. Regarding tariff negotiations with the United States, he said, "We will conclude negotiations by the August 1 deadline in accordance with the principle of maximizing national interest and mutual benefit," and added, "We will establish a Korea-U.S. manufacturing cooperation roadmap to move toward a strategic partnership."
Regarding sensitive items such as agricultural products and beef, he responded, "We will protect them as much as possible, but we are considering technical adjustments from the perspective of regulatory rationalization and strengthening industrial competitiveness." This suggests an avoidance of unilateral opening of sensitive items, while indicating a flexible approach that considers international norms and industrial realities.
For advanced industries, he said, "In response to the U.S. Inflation Reduction Act (IRA), we will push for the introduction of production tax credits for semiconductors and secondary batteries at a level comparable to a 'Korean version of the IRA'." He added, "We will provide integrated support including tax benefits, financial assistance, and regulatory innovation so that our companies can expand domestic production without being shaken by trade risks."
Regarding next-generation technological innovation including AI, he said, "We will reorganize R&D and commercialization systems for future technologies such as AI semiconductors and humanoids, and strengthen regulatory sandboxes."
On energy policy, he stated, "We will overhaul the power grid, market systems, and site regulations to lay the foundation for expanding renewable energy, and resolve regional imbalances by building an electric power superhighway." On nuclear power, he said, "We will pursue carbon neutrality and export industrialization based on safety and public acceptance."
Meanwhile, regarding stocks with potential conflicts of interest (such as Doosan Enerbility and KEPCO), he explained, "I completed the sale of all such holdings immediately after being nominated as minister." On suspicions of his child's military service evasion, he stated, "My child was classified as wartime labor service due to illness while waiting for active duty, and this was in accordance with procedures."
Kim concluded, "Now is a time when a major transformation is needed across all sectors of industry, energy, and trade," and pledged, "I will be a minister who takes full responsibility until the effects of policy are felt on the ground."
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