SEOGWIPO, Jeju Island — The bilateral trade relationship between Seoul and Washington will remain solid and unwavering even under the scenario of the potential reelection of former U.S. President Donald Trump, Federation of Korean Industries (FKI) Chairman Ryu Jin said in a press conference, Friday.
Trump’s wayward and unpredictable approach to international trade and foreign policy emerges as a major headache for Korean conglomerates, many of which are export-reliant, ahead of the upcoming U.S. presidential election slated for November.
The so-called Trump risk is escalating here and abroad as he threatens to impose higher tariffs on global carmakers based in non-American territories and reduce incentives for Korean battery firms.
However, the head of the nation’s business lobby said the risk will not be as serious as expected.
“Even if Trump wins the upcoming election, the (trade) relations between Korea and the United States will not change drastically,” Ryu told reporters on the sidelines of this year’s CEO Summer Forum held by the FKI on Jeju Island.
A recent assassination attempt on Trump during his election rally also raises the possibility of him having an increased chance of winning the election, as he has garnered a huge spotlight after pumping his fist into the air in resolute defiance while leaving the stage with blood running down the side of his face.
Ryu also underscored the importance of tightening the trilateral partnership between Korea, the U.S. and Japan.
“Key aides to Trump are well aware of the importance of the relationship, so Trump will be more cooperative in negotiations with Korea. We do not have to worry too much about Trump’s reelection.”
Ryu said Trump’s potential win may give more leeway to Korean firms.
“Trump treats any foreign companies, which invest in the U.S., on an equal footing with local firms there,” Ryu said, adding that this will enable Korean manufacturers to focus on their business in the world’s largest economy without being swayed by any unexpected political risk there.
The chief of one of the nation’s most influential business lobbies also urged Korea to abolish outdated regulations to help bolster the global competitiveness of local firms.
“Any outdated regulations should be updated or abolished in no time,” he said. “The competitiveness in institutional systems has a close connection with the national competitiveness. Under the old regulatory hurdles, Korean firms still have a tough 커뮤니티 time competing with their global counterparts. We should deregulate any rules that are not in line with global standards.”
He also advised the Korean government to adopt a similar approach to regulations as the U.S.
“The U.S. enables startups or companies to do their businesses freely without regulations, and if there is a problem in the process, it introduces regulations,” he said. “But in Korea, we introduce regulations first, even before companies expand their business. This is the key reason why many companies express a difficulty when doing business here.”
He also picked the low birthrate here as one of the biggest obstacles that the Korean economy faces.
“Most companies also take the issue very seriously,” he said. “The falling birthrate will end up shrinking domestic consumption. The falling number of workers is directly linked to the survival of companies. The FKI is also widening incentives for childbirth, and we expect more companies to join the trend as well down the road.”