사진 확대 IMF (International Monetary Fund) foreign exchange crisis, Japan’s export restrictions on semiconductor materials, and COVID-19. The higher the wave, the more our exports have grown through crisis. In particular, Japan’s export regulations of semiconductor core materials in 2019 are remembered as a time when it was harsh even during its 30-year public service. For more than half a year, I, who was the director of the Ministry of Trade, Industry and Energy’s material parts bureau, used to put my head together with companies during the day, review reports posted at dawn, and prepare a presentation the next day. As he left the tunnel so hard, the fruit of independence of materials, parts, and equipment (small manager) industries began to grow.
The enforcement of mutual tariffs from the United States on August 7 opened the era of high tariffs for the first time in nearly 100 years. Fortunately, the company has overcome the crisis with good negotiation results, but there are many concerns about companies. More than 6,500 related consultations such as buyers’ demand to cut prices and change payment conditions, rising logistics costs, and detailed application of tariffs and origin were gathered at the “Tariff 119 Comprehensive Counseling Center” operated by KOTRA. According to a survey by the National Trade Council (NFTC) in early August, U.S. tariffs are expected to affect not only the other countries but also the entire global manufacturing supply chain, including procurement, production, and services of U.S. companies.
Economic security and supply chain reorganization have become a constant trend. The United States and Europe only advocate their own interests, regardless of whether they are allied or not. According to the “Manufacturing Roll 2025” plan, China ranked five of the 13 core technologies as the number one in the world. China, which has established its own supply chain from technology development to intermediate goods and finished products, is now looking beyond its technological advantage. Now is the time to use U.S. tariff policy and competition with China as an opportunity for a major pivot.
The key is manufacturing. The U.S. is advocating a high tariff policy to revive the manufacturing industry, and one of the reasons for extending the tariff moratorium to China is that it is concerned about the damage the rare earth supply chain disturbance will cause to the manufacturing industry. Korea has grown into the top 10 economy because it has a global manufacturing portfolio ranging from the heavy and chemical industry to high-tech and consumer goods. Our manufacturing and investment capabilities, represented by the shipbuilding industry, also played a role in the tariff negotiations.
Now, K Manufacturing must enter new global supply chains and expand alternative opportunity markets based on accumulated industrial capabilities and all-round core supply chains. In that sense, it is welcome to visit Korea by the secretary-general of the Communist Party of Vietnam, our three largest trading partners. Partnership opportunities are also seen in the global supply chain that will leapfrog K manufacturing. For example, shipbuilding cooperation, which was the key to the conclusion of the tariff negotiations, will be a major turning point for both Korea and the United States. Korea, which has the world’s best design and construction capabilities, and the software powerhouse, the United States, can join forces to lead the future mobility industry such as autonomous ships. Manufacturing AI is also an opportunity. Industry-wide AI transformation using our vast high-quality manufacturing data will accelerate autonomous manufacturing innovation and productivity improvement, and accelerate the development of new industries such as physical AI.
Although the crisis is shaking the manufacturing industry again, the Republic of Korea has always turned the immediate crisis into a growth opportunity by using it as an opportunity for a major perception. So far, cumulative exports this year are also the largest ever and have achieved similar results to last year. This is thanks to the hard work of Korean exporters in developing technology and developing new markets despite the recession.
In the face of the renewed wave of K-manufacturing, KOTRA will connect domestic and foreign companies and institutions, become a global watchmaker and a stepping stone for companies to make crises an opportunity.
[KOTRA CEO Kang Kyung-sung]