On May 12, 2025, South Korea’s finance ministry announced its intention to actively engage with the United States in response to newly imposed tariffs on semiconductors and biopharmaceuticals. The government aims to minimize the economic impact of these tariffs and plans to maintain open communication with U.S. counterparts to address and potentially mitigate the issues arising from these trade measures.
These developments occur amid heightened political activity in South Korea, with presidential campaigns underway following the impeachment of President Yoon Suk Yeol. Leading candidate Lee Jae-myung has criticized U.S. tariffs as potentially isolating and has advocated for coordinated responses with other nations.
In addition to diplomatic efforts, South Korea is implementing domestic measures to support its industries. The government has proposed a supplementary budget of approximately $8.6 billion to bolster economic growth and mitigate the effects of global trade tensions.
Furthermore, South Korea plans to provide 14 trillion won (approximately $10 billion) in low-interest loans in 2024 to support its chip industry amid competition from China and uncertainties linked to the new U.S. administration under President-elect Donald Trump.
These initiatives reflect South Korea’s strategic approach to navigating international trade challenges and safeguarding its key economic sectors.
Source: Reuters
