The worldwide commerce order is going through a structural transformation interval for the primary time in 30 years for the reason that launch of the World Commerce Group (WTO) system, commerce specialists stated at a gathering held by the Korea Chamber of Commerce and Trade (KCCI) on Dec. 17.
The worldwide provide chain map is being redrawn by mega-deals centered on superior industries comparable to synthetic intelligence (AI) and semiconductors, the specialists stated, advising Korean firms to shift the main target of their survival methods from “low value” to “low danger.”
The KCCI introduced that it held the KCCI Worldwide Commerce Committee at Lotte Resort in Sogong-dong, Seoul to look at the commerce surroundings following the conclusion of Korea-U.S. tariff negotiations and focus on countermeasures for subsequent yr’s new commerce order. The assembly was attended by Chairman Lee Kye-in of the Worldwide Commerce Committee (CEO of POSCO Worldwide), Govt Vice Chairman Park Il-jun of the KCCI, Vice President Yang Website positioning-jin of SK Hynix, Vice President Kim Dong-wook of Hyundai Motor, Govt Managing Director Kim Kyung-il of Hanwha Corp., Managing Director Lee Deok-hee of HD Hyundai, and different main home company representatives and executives.
In his opening remarks, Chairman Lee stated, “This yr was certainly one of nice uncertainty, however we have now responded to dangers by shut cooperation between the federal government and companies,” including that “predictability has improved with the current formalization of the Korea-U.S. tariff settlement.” Nevertheless, he identified that “the burden of excessive tariffs on some objects comparable to metal and the unfold of world protectionism stay challenges to be resolved,” emphasizing that “2026, when U.S. coverage adjustments and provide chain safety points start in earnest, can be an vital turning level for the commerce order.”
Sung Jung-min, director of McKinsey International Institute, who gave the keynote presentation, outlined the present commerce and funding order as having “entered a stage of ‘full reconfiguration’ quite than easy decoupling.” Sung analyzed that “mega funding offers in AI, semiconductors, and battery fields are restructuring manufacturing bases,” and “whereas america absorbs semiconductor investments from Korea and Taiwan like a black gap, Korea’s funding in China has plummeted for the reason that pandemic, making provide chain shifts a actuality.” He continued, “company competitiveness now relies upon not on ‘the place to fabricate cheaply’ however on ‘the place to take a position to scale back dangers,’” calling for redesigning funding portfolios contemplating geopolitical dangers.
Kim Su-dong, director of the International Competitors Technique Analysis Division on the Korea Institute for Industrial Economics & Commerce, expressed concern that “subsequent yr can be a time when america’ excessive tariffs and non-tariff obstacles, and the European Union’s Carbon Border Adjustment Mechanism (CBAM) will function concurrently,” including that “advanced burdens can be notably intensified on main home manufacturing industries comparable to metal, chemical substances, batteries, and cars.” Kim introduced options together with market diversification centered on rising markets, securing technological super-gap based mostly on R&D, and establishing techniques to reply to abroad certification and environmental rules. He added, “responding to environmental rules is not a value situation however an important situation for market entry,” and “future export and funding efficiency can be starkly divided relying on the extent of response.”
Company officers who attended the assembly expressed provide chain difficulties they expertise within the area and requested energetic authorities help. One company government identified, “provide chain dangers for uncooked supplies are being felt firsthand resulting from delays in China’s uncommon earth export permits,” and “medium- to long-term securing methods and diplomatic responses to organize for useful resource weaponization are pressing.” One other attendee steered that “procurement necessities and localization requirements are being strengthened centered on america and Europe, elevating entry obstacles,” and “diplomatic defensive measures on the pan-government stage are wanted for tariff improve actions in third international locations comparable to Mexico.”
Yoon Cheol-min, director of KCCI’s Worldwide Commerce Division, stated, “the present adjustments within the commerce surroundings usually are not short-term variables however long-term and structural traits,” including that “we’ll strengthen public-private cooperation throughout finance, rules, and provide chains to develop sensible help that firms want within the area.”
