As the global political environment is expected to change due to elections in major countries, Korean industries discussed trade issues such as global policy responses with the Korean government. Companies submitted recommendations to the Korean government on trade issues, including difficulties in investing in the United States.
The Federation of Korean Industries (FKI) held the second meeting of the Executive Council on Global Issues by inviting Korean Trade Minister Cheong In-kyo on the morning of Feb. 15. The event was aimed at preparing a joint response direction for the Korean government and businesses to cope with the uncertainties of trade environments surrounding Korea.
“Global protectionism is intensifying, including the recent implementation of the Carbon Border Adjustment Mechanism (CBAM) by the European Union (EU) and the strengthening of sanctions on China over advanced technologies by the United States,” said Kim Chang-beom, vice chairman of the FKI. “As a practical joint consultation between the public and private sectors, this council will play a role in coping with trade barriers that Korean companies will face in the future.”
This year, in particular, has been dubbed a “super election year.” There are about 76 elections scheduled around the world including the U.S. presidential election. As the outcomes of the elections may change Korean companies’ business environments, it is necessary to utilize trade strategies that agilely respond to changes in political environments in major countries, many experts say.
The council gleaned the opinions of the Korean industry world at the meeting and delivered them to Cheong. These included a request to increase the quota for H-1B visas, financial support for the Korean defense industry, issues about items eligible for the Inflation Reduction Act (IRA), and joining a tariff agreement to ensure the global competitiveness of Korean-made aircraft.
As Korea accounts for a small share of the U.S. government’s quota for specialty occupation visas for foreigners, Korean companies are requesting that the quota for Korean professionals be increased. As of 2022, 2,179 such visas were issued to Koreans, accounting for 1.6 percent of the total.
The Korean defense industry has proposed an amendment to the Export-Import Bank Act, including raising the bank’s statutory capital limit from the current 15 trillion won to 30 trillion won to facilitate policy financing. Ahead of the IRA’s implementation, some companies requested that Korean-made products be added to the list of eligible items for tax credits and subsidies.
“The Korean government will strive to minimize external uncertainties facing Korean companies,” Cheong said. “We will run a preemptive and multi-layered response system to respond to industrial policies of major countries. We will strengthen the prevention of overseas leakage of Korea’s core technologies and strive to protect national interests by employing a trade strategy that protects the frontline of economic security.”