The South Korean Minister of Industry said on Monday that the country had succeeded in avoiding the worst by concluding an agreement on customs duties with the United States, but that concerns remain as for the effect of a rate of 15% on the profitability of exporters.
The Minister of Industry, Kim Jung-Kwan, spoke during a round table bringing together representatives of the private sector and academics.
“There are concerns about the fact that this unique customs right of 15% will have a significant impact on the profitability of companies exporting to the United States, in particular small and medium-sized businesses, compared to local American companies,” said Kim in his opening speech.
As part of the agreement concluded with American President Donald Trump, South Korea has also committed an investment plan of $ 350 billion, including 200 billion for strategic sectors such as semiconductors. The rest will be devoted to the American naval industry.
Kim added that the government would continue discussions with the United States in order to specify the terms of this investment plan, in order to benefit the economy and South Korean companies.
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Between Seoul and Washington on this file, and according to South Korean officials, other discussions will be necessary, in particular on the structure of the investment fund and other details.
Regardless of the customs duties agreement, South Korea will seek to develop a long -term strategy in the face of the new era marked by the rise of nationalism in the global trade environment, said Minister Kim.
(Report by Ju-Min Park; writing: Ed Davies)