Six Major Business Groups Welcome Trade Deal, Urge Cautious Approach to Business Legislation

Eliminating External Uncertainties
A Turning Point for Korea-US Advancement

The business community has welcomed the Korean government's conclusion of trade negotiations with the United States. As a major source of trade uncertainty has now been addressed, there have also been calls for the domestic political sector to carefully review legislation related to businesses to help enhance the competitiveness of Korean companies in the global market going forward.

The six major business organizations?Korea Chamber of Commerce and Industry, Korea Federation of SMEs, Korea Employers Federation, Federation of Korean Industries, Korea International Trade Association, and Korea Federation of Middle Market Enterprises (listed in alphabetical order)?issued a statement on the 31st, saying, "We welcome the conclusion of the trade negotiations," and added, "We expect a significant improvement in bilateral relations, including Korea-US economic cooperation."

On this day, the trade negotiations were largely concluded as the Korean delegation in the United States held talks with President Donald Trump at the White House. The main points of the agreement include lowering the US reciprocal tariffs on Korean goods from the current 25% to 15%, in exchange for commitments such as $150 billion for the MASGA (Make American Shipbuilding Great Again) project and a $350 billion (approximately 487 trillion won) financial package for the United States.

The business community assessed that this agreement not only resolves uncertainties in the export environment but also creates conditions for Korean companies to compete in the US?the world's largest market?on terms equal to or better than those of other major countries.

The six business organizations stated, "The fund for advancing industrial cooperation between the two countries will serve as a significant turning point for Korean companies to secure leading positions in strategic industries such as shipbuilding, semiconductors, secondary batteries, bio, and energy in both the US and global markets." They added, "By combining our strengths in manufacturing competitiveness with the US's innovation capabilities and market scale, we believe we can further enhance the competitiveness of Korean companies and greatly expand export markets."

With some external uncertainties resolved, they also voiced opinions on domestic issues such as business-related legislation. The six organizations said, "Now that external uncertainties surrounding the business environment have been addressed, we will focus even more on domestic investment and job creation." They continued, "To this end, we hope that the business-related bills currently under discussion in the National Assembly will be carefully reviewed so that they can enhance the global competitiveness of Korean companies."