South Korea to launch economic consultative bodies to prepare for 2nd Trump administration

Seoul, Nov 10 (IANS) South Korean President Yoon Suk Yeol on Sunday called for the launch of finance, trade and industry consultative bodies to brace for the potential impacts of former US President Donald Trump’s return to the presidency.

Yoon made the call during an economic and security meeting with ministers and senior aides to discuss preparations before Trump assumes office in late January, Yonhap news agency reported.

“International markets have already begun responding based on anticipated policy directions even before the new U.S. administration takes office, so the government should monitor the markets closely and ensure thorough preparations,” Yoon said.

He emphasised the new US administration’s shift in policies could bring significant changes to the global economy and security landscape.

“Consequently, this will directly affect our economy and security, so thorough preparations are essential,” he added.

Yoon anticipated positive momentum for the shipbuilding and petrochemical sectors under Trump’s energy policies and highlighted the importance of strengthening cooperation in advanced industries, including artificial intelligence, biotechnology and quantum technology.

During a phone conversation with Yoon on Thursday, Trump expressed the US’s interest in working with South Korea in the shipbuilding industry, particularly in naval shipbuilding, exports and maintenance.

“In defence, based on our robust South Korea-US alliance, we must maintain a strong deterrence against North Korea and be prepared to lead in promoting genuine peace and prosperity in the Asia-Pacific region,” Yoon said, noting significant structural changes in security could arise.

A second Donald Trump administration is expected to bring shifts and unpredictability to the US-South Korea alliance, potentially increasing pressure on Seoul to take on a larger share of the burden as a US ally.

Another key focus will be how Trump might address North Korea’s denuclearisation, especially amid growing scepticism about Washington’s commitment to this goal, as well as his approach to Russia’s war in Ukraine at a time when North Korean troops have been sent to Russia to support the war.

Yoon said he and Trump agreed to meet at an early date during the phone call to engage in further discussions.

During the meeting, Yoon instructed the government to closely engage with Korean companies to reflect their needs into policies in a manner that best serves the national interest, Sung Tae-yoon, the chief of staff for policy, said in a briefing.

Attendees at the meeting analysed Trump’s proposed tariffs on imported goods and energy policies, aiming to identify new business opportunities and minimise potential negative impacts on Korean businesses, according to Sung.

On security matters, the officials discussed defence cost sharing for US Forces Korea, North Korea’s troop deployment to Russia and other bilateral alliance issues.

The discussions focused on strengthening collaboration with the US to enhance deterrence against North Korea, improve security and defence industry cooperation, and create synergies through advanced industries and technological cooperation, Principal Deputy National Security Adviser Kim Tae-hyo told reporters.

Observers predict Trump, known for his transactional view of alliances, may seek to renegotiate the defence cost-sharing agreement with South Korea, potentially jacking up Seoul’s share of the costs for stationing the 28,500 US troops here.

–IANS

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