South Korea Eyes U.S. Investments Amid Tariff Concerns

South Korea's trade minister anticipates increased investment in the U.S. by domestic companies if higher tariffs are implemented by the forthcoming U.S. administration following Donald Trump's 2024 election victory. This response could accelerate investments and increase U.S.-bound exports from small and medium-sized manufacturers.

In light of Donald Trump's victory in the 2024 U.S. presidential election, South Korea's trade minister foresees a potential increase in U.S. investments by South Korean firms if the next administration raises tariffs, as indicated in a statement made on Wednesday.

Trade Minister Cheong In-kyo warned that while it's challenging to comment on other nations' political landscapes, protectionist measures could prompt South Korean companies to invest more heavily in the U.S. for on-site production, especially affecting industries like the auto sector.

With South Korean exports already under pressure, heightened tariffs could lead to significant losses for the trade-dependent economy and amplify concerns among exporters, notably in the automotive sector where reliance on domestic production is prevalent.

(With inputs from agencies.)