Korean exporters urge bold policy shift in response to US tariffs

South Korea’s trade sector has identified strategic trade policy as the top priority for the new government, particularly in response to growing risks such as US tariffs, a survey showed Friday.

According to a report released by the Korea International Trade Association, 20.7 percent of 416 trade industry professionals surveyed on June 10-11 selected the implementation of a strategic trade policy — aimed at maximizing national interest and strengthening industrial competitiveness — as the most urgent economic and trade agenda for the new administration.

Closely following were diversification of export items and markets (20.3 percent) and support for turning domestic small and medium-sized enterprises (SMEs) into export-oriented companies (18.1 percent).

Among specific tasks under strategic trade policy, the most frequently cited was an active response to tariff risks posed by the United States.

“The trade sector hopes the new administration will establish a stable trade environment, diversify technology-driven exports, and help SMEs shift toward export-led growth,” said Jung Hee-chul, executive director of KITA’s trade promotion division. “We look forward to bold export policies that can overcome US-led tariff risks and rising protectionism to upgrade Korea’s export momentum.”

KITA noted that uncertainty in global trade has intensified in recent years, particularly due to tariffs imposed by the Trump administration on key Korean exports such as steel and automobiles. Companies are seeking fairer export conditions to remain competitive globally, the association said.

Other key demands included expanding and upgrading free trade agreements, as well as strengthening coordination between the government and the private sector in trade negotiations.

For export diversification, respondents emphasized the importance of supporting high-potential sectors such as secondary batteries and biohealth, as well as expanding exports of consumer goods such as cosmetics and food.

Without diversification of export items, efforts to expand into new markets will face limitations, especially amid rising global protectionism, KITA added.

Other priorities cited included fostering AI-powered export industries (9.5 percent), enhancing trade security enforcement (7.5 percent), and improving logistics security through increased use of Korea-flagged vessels (7 percent).

The export outlook for 2025 remains pessimistic. About 43.3 percent of respondents expect exports to decline by more than 5 percent this year, while 38.9 percent anticipate no major change and only 17.8 percent foresee growth.

About 71.1 percent of respondents said they believe an export recovery will not begin until next year or later.