South Korea's finance minister announced plans on Monday to provide support for industries facing urgent needs ahead of the impending 25% tariff imposed by U.S. President Donald Trump. Minister Choi Sang-mok highlighted the importance of analyzing the macroeconomic impact and putting in place support measures for vulnerable sectors, as per the ministry's statement. Trump's recent tariff announcement includes a 25% duty on imports from South Korea, which is due to take effect this week, alongside a blanket tariff on overall U.S. imports.
In response to the tariffs, South Korea's acting President Han Duck-soo confirmed that the government would swiftly prepare support measures for the automotive industry and engage in negotiations with the Trump administration. South Korea recorded a historic high of $127.8 billion in exports to the U.S. in 2024, with automobiles being the leading product, representing 27% of the total.
Finance Minister Choi Sang-mok and other policymakers also strategized on how to address the situation, anticipating Trade Minister Cheong In-kyo's upcoming visit to the U.S. This will mark the fifth high-ranking visit from the Ministry of Industry, Trade and Energy since Trump's inauguration. Despite no direct discussions with South Korean leadership, Trump extended an invitation to Hyundai Motor Group's Chairman Euisun Chung to the White House for the announcement of a substantial $21 billion investment in the U.S.
Additionally, on Monday, South Korea's financial regulator called on firms and state entities to be ready to offer liquidity support to export-oriented businesses and their partners affected by the tariffs. This initiative comes as the KOSPI stock index plummeted to a 17-month low amidst a global trend of divesting in risky assets due to U.S. trade policies. The regulator also disclosed plans to launch a market stabilization program valued at 100 trillion won ($68.08 billion) to mitigate the adverse impact.
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