South Korea Eyes U.S. Investments Amid Trade Uncertainty

South Korea's Trade Minister, Cheong In-kyo, indicates that South Korean companies may increase investments in the U.S. if tariffs rise under the next administration. Current U.S. investments from South Korea are significant, particularly in the automotive sector, amidst ongoing uncertainties in international trade relations.

South Korea's trade minister expressed potential for increased domestic investment in the United States, contingent on the next U.S. administration's tariff policies. These comments followed Donald Trump's victory in the 2024 presidential race.

Cheong In-kyo, South Korea's Trade Minister, suggested that if tariffs were raised, South Korean companies might boost direct investment and on-site production in the U.S. Investment in the U.S. has predominantly been in the automotive sector, notably in electric vehicles.

With potential blanket tariffs of 10% to 20% on U.S. imports, South Korea's export-reliant economy could lose up to $44.8 billion in exports, according to a local think tank. Despite uncertainties, South Korea plans to maintain smooth trade relations with the U.S. and other key markets like China.

(With inputs from agencies.)