South Korean President Yoon Suk Yeol on Sunday directed the immediate launch and operation of an ad hoc consultative body spanning finance, trade and industry to prepare for major shifts and potential ramifications expected with the inauguration of the Trump administration’s second term in January.
Yoon highlighted that "significant changes in the global economy and security landscape" are expected as the second Trump administration takes office in Washington and sets its policy direction, during a meeting intended to review economic and security conditions amid the changing external environment.
“As (these shifts) will have direct, significant impacts on our own economy and security, we must prepare meticulously in various ways,” Yoon said during the 110-minute meeting.
Yoon emphasized the need for proactive, airtight measures, particularly in markets, noting that international markets have already begun to respond in anticipation to major policy shifts expected under the Trump administration’s second term.
“First, we will promptly activate a consultative body covering the three key areas of finance, trade and industry, with the deputy prime minister for economic affairs acting as the overseer."
Yoon noted that “the greatest changes are anticipated in the trade sector,” urging government officials to work closely with industry stakeholders rather than confining discussions to their desks, as government support plays a critical role in industry growth and corporate competitiveness.
Yoon, however, pointed to potential opportunities ahead, particularly in the shipbuilding sector -- where Trump expressed an intent to strengthen bilateral partnerships during their Nov. 7 phone call -- and in the petrochemical sector under Trump’s energy polices.
“If the new US administration adopts a more flexible policy on fossil fuels, it may enable our currently stagnant petrochemical sector to regain its former standing,” Yoon said during the meeting.
Yoon also urged participating members to maintain and strengthen cooperation with the US in future strategic industries -- such as AI, advanced biotechnology and quantum technology -- under the second Trump administration.
Key Cabinet members attended the meeting, including: Deputy Prime Minister Choi Sang-mok; Trade, Industry and Energy Minister Ahn Duk-geun; Foreign Minister Cho Tae-yul; Defense Minister Kim Yong-hyun; and Unification Minister Kim Yung-ho; along with presidential aides such as National Security Adviser Shin Won-sik.
Yoon also called for "maintaining firm deterrence against North Korea based on the rock-solid Korea-US alliance in the field of defense."
"Significant structural changes could also arise in the security sector," Yoon said during the meeting. "But given the sensitive nature of security matters, I hope you give careful consideration to whether such changes can be implemented all at once."
A senior presidential official provided further insight into Yoon’s reference to significant structural changes in the security sector during a press briefing after the meeting.
“We should consider how the incoming US administration’s global vision and direction might redefine its relationships with NATO, its position on the Ukraine war, and its alliances in the Asia-Pacific and Indo-Pacific regions,” the official said on condition of anonymity. “There may be a notable shift in priorities and a different approach from the past four years, with the potential to significantly influence not only each country’s policies toward the US but also regional security policies. This is why the president highlighted it.”
Principal Deputy National Security Adviser Kim Tae-hyo said the meeting "focused on assessing both the risk factors and opportunities" facing South Korea's foreign policy and discussing future strategies for preparation during the press briefing.
Kim said the Yoon administration will evaluate which global issues should become focal points moving forward, including defense cost-sharing between South Korea and the US, the Ukraine war and North Korea-Russia cooperation.
During the meeting, Yoon also reaffirmed his commitment to arrange an in-person meeting swiftly with US President-elect Trump, following their Nov. 7 phone conversation in which they "briefly discussed security and economic issues."
"We agreed to arrange a meeting at the earliest possible date to have time for rapport-building and dialogue," Yoon said in his opening remarks.
The Yoon administration has intensified efforts to devise a strategic response to the upcoming second term of the Trump administration.
Seoul’s Foreign Ministry announced Friday that weekly ministerial-level meetings will be held to share information on the incoming US administration and to coordinate South Korea’s response ahead of President-elect Trump’s inauguration.
The meetings will involve: the Ministry of Economy and Finance; the Ministry of Foreign Affairs; the Ministry of Trade, Industry and Energy; the Office for Government Policy Coordination under the Prime Minister’s Office; and others.
South Korea held two consecutive high-level meetings on Thursday and Friday. On Thursday, Deputy Prime Minister Choi convened the "Ministerial Meeting on Economic Affairs and the Ministerial Meeting on International Economic Affairs" to address the impact of the US presidential election outcome, outline response strategies and discuss key trade issues between Seoul and Washington, along with response plans.
