(Yonhap Interview) S. Korea aims to expand imports from U.S. 'constructively' to address Trump uncertainties: minister
SEOUL, Dec. 1 (Yonhap) -- Industry Minister Ahn Duk-geun has said that South Korea plans to "constructively" increase imports from the U.S. to address concerns over potential protectionist measures under the incoming Donald Trump administration targeting key trade partners.
"As it is well known that Trump will focus on the agenda of trade balance, we also need to make efforts to ensure balanced exports and imports," Ahn said in an interview with Yonhap News Agency on Friday when asked about Seoul's plans to prepare for the launch of the new U.S. administration.
His remarks came as Trump continued to warn of raising trade barriers, including the possible imposition of sweeping tariffs of at least 10 percent on all imported goods.
Trump has also announced plans to impose a 25 percent tariff on goods from Mexico and Canada, as well as an additional 10 percent on Chinese imports, once he takes office in January.
These policies have raised concerns that his administration may take similar steps against South Korea, which recorded a record trade surplus of US$44.4 billion in bilateral trade with the U.S. in 2023.
Ahn, however, emphasized that efforts to expand imports would build on current initiatives to strengthen bilateral ties in cutting-edge sectors, which will inevitably increase the demand for parts, machinery and other related goods.
"The government is working to constructively utilize these opportunities as part of our industrial and business strategy," Ahn said. "There is a possibility for us to secure oil and gas, which we greatly need, at more competitive prices as well."
"In terms of diversifying the industrial supply chain with the U.S., there is room for us to leverage this move to advance our industrial policy to the next level," he added.
The industry minister also noted that the government is monitoring changes in major U.S. policies, including the Inflation Reduction Act, to provide necessary support to affected businesses if needed.
As for the country's exports, Ahn noted that South Korea has been successfully diversifying its trade portfolio, which could help the country address trade uncertainties in 2025 as well.
"We will continue efforts to diversify exports to bolster our export capacity and enhance national economic security," Ahn said.
With regard to the ongoing resource exploration project in the East Sea, Ahn said he hopes the project will serve as an opportunity for the country to enhance its capabilities to implement similar initiatives on the Korean Peninsula in the future.
"I hope the exploration will become the starting point for the country to expand its foundation for rolling out resource exploration projects on the Korean Peninsula," Ahn said, adding the government will also continue to update the public on the project's progress as early as possible.
South Korea is set to initiate the first drilling operation this month for the project, which could potentially uncover between 3.5 billion and 14 billion barrels of gas and oil.
"If there are any profits generated from the project, they will be fully allocated to the people," Ahn added.
Touching on South Korea's ongoing efforts to finalize a deal to build two reactors in the Czech Republic by March, Ahn expressed hope that the state-run Korea Hydro & Nuclear Power (KHNP) and U.S.-based Westinghouse will resolve their ongoing conflict to enable broader bilateral cooperation.
Westinghouse has been claiming that KHNP's nuclear reactors are based on its technology.
"There is an intellectual property infringement lawsuit under way, and the companies need to address such issues in a constructive manner," Ahn said, emphasizing that there is significant room for cooperation between South Korea and the U.S. in the nuclear energy sector.
In November, South Korea and the U.S. announced the signing of a memorandum of understanding on principles regarding nuclear exports and cooperation, reaffirming their mutual commitment to promoting the expansion of peaceful nuclear energy while upholding the "highest standards of nonproliferation, safety, safeguards and security."
"We have established the framework for government-level cooperation in the global market. I believe the companies will also make efforts to come up with constructive solutions," he added.
colin@yna.co.kr
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