Tag: business

I think this is where the political crisis has really impacted South Korea, which is the inability to effectively negotiate tariffs with the Trump administration because you don’t know who will be President week-to-week:

Industry Minister Ahn Duk-geun, right, speaks at the Korea Chamber of Commerce and Industry in Seoul, Thursday, during a meeting with businesspeople to discuss countermeasures against U.S. reciprocal tariffs. In the middle is Trade Minister Cheong In-kyo.

Korea has been hit with the highest reciprocal tariff rate among the 20 countries that have free trade agreements (FTAs) with the United States.

With it clear that Seoul had failed to persuade Washington to impose lower tariffs on Korean products compared to those from major exporters like Japan and the European Union, concerns are growing over Korea’s diplomatic approach and future trade negotiations with the U.S.

The White House announced on Wednesday (local time) that the U.S. will impose a 26 percent reciprocal tariff on Korea, while charging 24 percent on Japan and 20 percent on EU member states.

Korea Times

You can read more at the link.

It will not only be South Korean stocks dipping this week, but likely most of the world as well:

South Korean stocks fell 3 percent to a near two-month low Monday ahead of U.S. reciprocal tariffs set to be announced later this week amid the removal of a short selling ban. The local currency sharply fell against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) dropped 76.86 points to close at 2,481.12, marking the lowest closing since Feb. 3, when it finished at 2,453.95.

Trade volume was slim at 385.5 million shares worth 8.1 trillion won (US$5.5 billion), with losers sharply outnumbering winners 824 to 87.

Foreigners sold a net 1.5 trillion won worth of stocks, while institutions and individuals purchased a net 666.9 billion won and 789.9 billion won, respectively.

Analysts said investors were concerned that U.S. President Donald Trump’s reciprocal tariffs, slated for Wednesday (U.S. time), would trigger a global trade war. He also confirmed 25 percent tariffs on all imported cars set to take effect Thursday.

Yonhap

You can read more at the link.

It looks like Korea is learning how to get in the good graces of the Trump administration, invest in America:

Hyundai Motor Group Executive Chair Euisun Chung listens, as U.S. President Donald Trump delivers remarks at the White House, in Washington on March 24, 2025 in this photo released by Reuters.

South Korean conglomerate Hyundai Motor Group said Monday it will invest US$21 billion in the United States through 2028, as U.S. President Donald Trump is ramping up tariff pressure to boost domestic manufacturing.

The group’s Executive Chair Euisun Chung, alongside Trump and Louisiana Gov. Jeff Landry, made the announcement on the plan that includes an investment of $8.6 billion for the automotive sector, $6.1 billion for the steel industry, component parts and logistics, and $6.3 billion for future industry sectors and energy.

“Today, I am pleased to announce an additional $21 billion in new investment over the next four years — our largest U.S. investment ever. A key part of this commitment is our $6 billion investment to strengthen the U.S. supply chain (for) steel and parts for automobiles,” he said at the White House.

Yonhap

You can read more at the link.

Maybe these Korean firms need to be lobbying the Mexican government to start cracking down on fentynal smuggling and human trafficking along the border to get these tarriffs removed:

South Korea’s economy has come under direct impact as US President Donald Trump signed an executive order on Saturday imposing tariffs on Mexico, Canada and China, raising concerns about a prolonged global trade war.

Industry experts warned on Sunday that Korea, heavily dependent on exports, could face significant setbacks if Trump’s tariff war escalates. Major companies, including Samsung Electronics, have manufacturing plants in Mexico and additional trade restrictions could disrupt their supply chains and profitability.

Korean firms strategically expanded their production bases in Mexico after the first round of US trade sanctions against China under the previous Trump administration. Electronics giants such as Samsung and LG, as well as automaker Hyundai Motor Group, bolstered their investments, either expanding existing facilities or establishing new ones.

As a result, Korea’s investment in Mexico surged from $11 million in 2020 to $396 million in 2022.

Korea Herald

You can read more at the link.

Is it really taking advantage of America by producing a product in your own country and selling it to the U.S.? If making the product in the U.S. was cheaper than manufacturing it in Korea for example, these foreign companies would do so:

President Donald Trump’s nominee for commerce secretary accused South Korea and Japan on Wednesday of having “taken advantage of” America’s “good nature,” stressing the need to work together with the allies to bring their production to the United States.

Howard Lutnick, a preeminent businessman, made the remarks during a Senate confirmation hearing, pointing to steel products from Japan and appliances from South Korea, as he responded to a senator’s question over what he will do to foster an environment to encourage joint ventures with U.S. allies.

“Our great allies have taken advantage of our good nature, and they like steel in Japan and appliances in Korea … I mean, they’ve just taken advantage of us. It’s time for them to partner with us and bring that production back home,” Lutnick told the Senate Committee on Commerce, Science and Transportation.

Yonhap

You can read more at the link.

If Trump wants to increase tariffs on South Korea I don’t think it really matters who the leader is:

Korea’s ongoing leadership crisis, triggered by President Yoon Suk Yeol’s attempt to impose martial law, is feared to leave the country vulnerable to potential new tariffs from the incoming Donald Trump administration during upcoming trade and economic negotiations, industry officials said Sunday.

Yoon is suspended from his duties following the National Assembly’s vote on Saturday to impeach him over his short-lived imposition of martial law on Dec. 3. Prime Minister Han Duck-soo has stepped in as acting president.

Officials from the nation’s business community expressed concerns that Korea may have weaker negotiating power under the presidency of the interim head of state.

“Every nation engages in a tight tug-of-war with the United States to minimize any damages from the ultra-protectionist stance of Trump,” an official from a major manufacturing firm here said.

“But it becomes harder for Korea to do so on an equal footing due to the absence of the state leader.”

Korea Times

You can read more at the link.

It appears Korean business owners are expecting the Trump administration to use tariffs on ROK exports if they are this concerned:

More than 8 out of 10 South Korean companies expect Donald Trump’s reelection as U.S. president will have a negative impact on the national economy, a survey showed Sunday.

In the annual survey on 239 companies with at least 30 employees on their management, 82 percent said the Korean economy will be negatively affected by the protectionist policy of the incoming second Trump administration as it has high dependence on exports, according to the Korea Enterprises Federation (KEF).

Only 7.5 percent answered the Korean economy will benefit from his reelection thanks to his China policy, expected to be aimed at curbing the growth of the world’s second-largest economy.

Yonhap

You can read more at the link.

It looks like the Korean defense industry has found yet another potential customer:

Second from left, Vice Admiral Angus Topshee, commander of the Royal Canadian Navy, is briefed about HD Hyundai Heavy Industries’ Aegis destroyer, the King Jeongjo the Great, at the shipbuilding site in Ulsan on Tuesday. [HD HYUNDAI]

HD Hyundai Heavy Industries (HD HHI) is in discussions with Canada regarding potentially contributing to the nation’s naval defense.  
  
Vice Admiral Angus Topshee, commander of the Royal Canadian Navy, toured the HHI’s Ulsan headquarters as part of discussions related to Canada’s upcoming Canadian Patrol Submarine Project (CPSP), estimated to be worth 60 trillion won ($42.8 billion), the company said Tuesday. 
  
Canada’s Department of National Defence is in the process of acquiring up to 12 3,000-ton submarine fleets in a bid to strengthen the nation’s maritime defense as part of the project.

Joong Ang Ilbo

You can read more at the link.

Considering how most of the fatalities from this deadly fire were foreign nationals, it is not surprising the company is being investigated for hiring illegal workers:

Police officers carry boxes confiscated from battery maker Aricell and workforce suppliers in Hwaseong, Gyeonggi Province, Wednesday, as they, together with the labor ministry, ratcheted up the investigation into a deadly fire at the company’s factory that killed 23 workers on Monday. Yonhap

The Ministry of Employment and Labor has launched an investigation into lithium battery maker Aricell over suspected illegal hiring of foreign workers after Monday’s deadly fire at its factory killed 23 employees, including 18 foreign nationals, officials said Thursday.

In particular, the ministry is looking into whether Aricell had directly imposed work orders on foreign temporary laborers hired by subcontractors, which is an illegal practice.

Korea Times

You can read more at the link.