Acting president warns of 'significant impact' on Korean economy from Trump's policies

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Acting president warns of 'significant impact' on Korean economy from Trump's policies

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Acting President and Minister of Economy and Finance Choi Sang-mok speaks during a ministerial meeting on international economic affairs at the government complex in central Seoul on Jan. 13. [MINISTRY OF ECONOMY AND FINANCE]

Acting President and Minister of Economy and Finance Choi Sang-mok speaks during a ministerial meeting on international economic affairs at the government complex in central Seoul on Jan. 13. [MINISTRY OF ECONOMY AND FINANCE]

 
Acting President and Minister of Economy and Finance Choi Sang-mok warned that the incoming U.S. administration’s policy drives could have a “significant impact”on the Korean economy, urging government agencies to proactively address potential risks ahead of President-elect Donald Trump’s inauguration slated for Jan. 20.
 
The remarks came during a ministerial meeting on Monday, as the government, as well as the business sector, braces for a second Trump term. Industry Minister Ahn Duk-geun, who recently wrapped up a visit to the United States, also highlighted the importance of maintaining incentives promised by Washington to Korean companies that day.
 

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“With the introduction of the new U.S. administration only a week away, the speedy execution of policy plans is expected to have a significant impact on the Korean economy,” said Choi during a ministerial meeting on international economic affairs held at the government complex in central Seoul on Monday.
 
The minister called on relevant government departments to “make every effort to preserve the strong economic partnership between Korea and the United States based on Korea’s solid economic fundamentals under the new administration.”
 
The acting president stressed, “Building on the close cooperation with corporations and business lobby organizations, the government should devise countermeasures and actively communicate with the National Assembly on the matter.”
 
Ahn of the Ministry of Trade, Industry and Energy, as well as Foreign Minister Cho Tae-yul and Bang Ki-sun, minister of government policy coordination under the Prime Minister's Office, were also present at the meeting.
 
During a separate meeting with local media outlets in Sejong that day, the industry minister emphasized the importance of ensuring that the U.S. government honors incentives put in place by the outgoing Joe Biden administration for Korean companies investing in the country.
 
“It is important to maintain various supporting measures implemented for Korean companies under the Inflation Reduction Act (IRA) program,” said Ahn, addressing a question on potential policy changes expected of the Trump administration.
 
“Maintaining the IRA itself is not a significant matter, as policy directions may change under different administrations,” said the minister, indicating that ensuring the actual business environment remains stable for Korean companies in the longer run should be the priority.
 
Minister of Trade, Industry and Energy Ahn Duk-geun, second from left, speaks during a roundtable discussion with the National Association of Manufacturers in Washington on Jan. 9. [MINISTRY OF TRADE, INDUSTRY AND ENERGY]

Minister of Trade, Industry and Energy Ahn Duk-geun, second from left, speaks during a roundtable discussion with the National Association of Manufacturers in Washington on Jan. 9. [MINISTRY OF TRADE, INDUSTRY AND ENERGY]

 
Ahn visited Washington and the state of Georgia from Jan. 6 to 9 to meet with U.S. lawmakers and government officials to discuss potential measures to bolster the partnership between the two countries in energy, trade and manufacturing.
 
One of the key areas of focus for potential cooperation is the shipbuilding industry.
 
“I discussed possible measures for cooperation in the shipbuilding sector for military and commercial purposes [during the U.S. visit],” said Ahn, adding that the Trump administration would soon announce its plan for regulatory reform in the shipbuilding industry.
 
The business sector is also preparing for anticipated policy changes under the incoming administration.
 
A delegation of the Korea Chamber of Commerce and Industry visited Georgia on Jan. 9 to meet with Rep. Matt Reeves of the Georgia House of Representatives, the business lobby said Sunday.
 
Meanwhile, Hyundai Motor made a $1 million donation to Trump’s inauguration fund, following similar moves by other major carmakers such as General Motors, Ford Motor and Toyota Motor.

BY SHIN HA-NEE [[email protected]]
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