Seoul, South Korea – South Korea’s Ministry of Finance said on Tuesday that the country will prepare measures to help companies adapt to high US tariffs and expand into new markets, as part of forming a working group to prepare economic policy plans for the new administration.
Domestically, the government said in a statement that it will introduce measures to boost demand in the short term, as well as provide financial support for technology development in the medium and long term to enhance market competitiveness.
South Korea reached a trade deal with the United States last week, just days before President Donald Trump imposed 25% tariffs on its exports to the United States.
The trade agreement set customs duties on exports from the Asian country at 15%, which is still higher than the basic rate of 10% and customs duties close to zero on exports under the free trade agreement between South Korea and the United States.
However, the issues left unresolved by the agreement provide room for further disputes as the two countries prepare for a summit between Trump and new South Korean President Lee Jae-myung in the coming weeks.
Experts said Trump may exploit the summit to try to obtain further concessions in areas such as defense costs and institutional investments, which were excluded from the agreement, while non-tariff and currency barriers may prove to be thorny issues.
In contrast, South Korea’s Ministry of Finance sought to give the agreement a positive character.
The ministry said the agreement eased uncertainty about the trade environment, while a $350 billion investment package included in the agreement will provide new job opportunities for companies, deepen economic cooperation between the two countries, and contribute to a more stable supply chain.
President Lee’s administration also plans to develop policy measures to promote new industries, such as artificial intelligence, semiconductors, and K-content, and include them in economic growth strategies and budget plans scheduled to be announced later this month.
The term “Korean content” refers to a range of cultural and entertainment goods produced by the country, ranging from K-pop music to Korean drama, which has flourished globally.
The ministry pledged to introduce regulatory improvements to stimulate business activity, during the opening of a meeting with the country’s major business groups.
Asia’s fourth-largest economy grew in the second quarter at the fastest pace in more than a year thanks to a recovery in consumer spending and increased technology exports, but it still faces headwinds due to slowing global trade amid sweeping tariffs.
Last week, the International Monetary Fund raised its forecasts for most advanced and emerging economies this year based on developments around US tariff negotiations, but South Korea was among the exceptions, with its 2025 growth forecast revised to 0.8% from 1%.
