December 22, 2024

• 

Ryu Jin, chairman of the Federation of Korean Industries, gives opening remarks at the 35th Korea-US Business Council Meeting in Washington on Tuesday. (FKI)

Business leaders from South Korea and the United States have urged their governments to address persistent trade barriers and discriminatory policies, emphasizing the urgency of these issues as the incoming Trump administration brings fresh uncertainties in global economic and trade dynamics.

The demands were outlined in a joint declaration adopted Tuesday at the 35th Korea-US Business Council meeting in Washington, organized by the Federation of Korean Industries and the US Chamber of Commerce.

The declaration called for consistent policies to maintain a predictable investment environment, including adherence to the Korea-US Free Trade Agreement.

The statement comes amid heightened uncertainty over a potential renegotiation of the KORUS FTA and revisions to key US legislation, such as the Inflation Reduction Act and the CHIPS and Science Act, under the second Trump administration.

“Both countries should continue to remove bilateral trade irritants, including discriminatory legislation focused on the technology industry and foster a stable and predictable business and regulatory environment,” the statement read.

The two sides highlighted unresolved issues in critical sectors such as digital trade, steel, pharmaceuticals, medical technologies and government procurement of cloud services, among others. Leaders stressed the importance of tackling these challenges to ensure that US and Korean firms are not disadvantaged compared to competitors in other countries.

With supply chain security critical to economic stability, the councils called for greater collaboration in the semiconductor, automotive, energy, battery, and critical minerals sectors. They encouraged bilateral and multilateral partnerships to diversify production and ensure continuity in the face of global disruptions.

The statement also urged efforts to facilitate bilateral investments to establish a mutually beneficial supply chain ecosystem for critical technologies.

In his opening remarks, FKI head Ryu Jin, chairman and CEO of Poongsan Group, stressed the need for cooperation between the two countries amid the leadership change in Washington.

“President-elect Trump’s policy pledges have signaled various changes to the business environment,” said Ryu. “As we navigate these waves of change, the business sectors of both countries must closely collaborate to prepare for a new era.”

Ryu underscored the importance of cooperation in supply chains, particularly in semiconductors, batteries, and high-tech industries. He noted that Korean companies have invested $143 billion over the past seven years since Trump’s first term, contributing significantly by creating quality jobs and driving technological innovation.

This year's meeting, the first in-person council meeting in the US in five years due to the COVID-19 pandemic, saw the largest-ever private delegation from Korea, according to the FKI. It included executives from the big four chaebol groups, including Samsung, SK Hyundai Motor and LG.

Key South Korean representatives included Hanjin Group Chairman Walter Cho, Chong Kun Dang Chairman Lee Jang-han, Youngone Corporation Vice Chairman Sung Rae-eun, HS Hyosung Vice Chairman Cho Hyun-sang, LG Chem Vice Chair Shin Hak-cheol, Samsung Electronics Executive Vice President Yun Young-joe, Hyundai Motor Vice President Kim Dong-wook and SK Americas Vice President Son Sang-soo.

On the US side, attendees included Evan Greenberg, chairman of Chubb Group and chair of the council, along with other senior executives from major American firms.

By Ahn Sung-mi (sahn@heraldcorp.com)