Deputy Minister Jeong In-gyo of the Ministry of Trade, Industry, and Energy said on the 7th, "Domestic political uncertainty is not affecting exports," while expressing expectations that this year's annual export amount will exceed $700 billion.
Deputy Minister Jeong presented the "2024 export and foreign investment performance and 2025 outlook" at a briefing room in the government complex in Sejong at 11 a.m. He noted, "I have not found evidence that domestic political situations are affecting trade through interviews with investors and corporations, networking with foreign government officials, and data collection."
He said, "Generally, exports are transacted 2 to 4 months in advance, appearing later in customs, so it is too early to observe the impact of domestic political issues on exports," adding, "I will do my best to ensure that domestic political situations do not negatively impact economic issues."
Deputy Minister Jeong expected this year's exports to show favorable trends continuing from last year. The export amount last year was $683.8 billion, with an average daily export amount of $2.53 billion, the highest on record. Among the 15 major items exported last year, exports of 8 items, including semiconductors, increased compared to the previous year, recording the highest export growth rate (9.6%) among the top 10 exporting countries. He said, "I cautiously predict that this year's annual export amount will exceed $700 billion and that we will achieve the 5th position in the global export rankings."
He also projected that the high won-dollar exchange rate would not negatively affect exports. Deputy Minister Jeong stated, "The won-dollar exchange rate has decreased compared to last week," and added, "Although the 1400 won exchange rate is burdensome for the domestic trading sector, I expect it to return to normal levels later on."
Deputy Minister Jeong noted, "Of course, there are risk factors." Notably, the tariff policy of incoming U.S. President Donald Trump, who will take office on the 20th, and oversupply from China due to U.S.-China conflicts are representative concerns. He stated, "We are preparing for various scenarios, including universal tariffs from the new U.S. government, and we are preparing negotiation strategies and responses," adding, "We are enhancing personnel at the Trade Commission in preparation for oversupply from China."
However, he anticipated that foreign investment attraction would increase this year despite these circumstances. The forecast for foreign direct investment this year is $35 billion, a 1.24% increase compared to last year’s record high of $34.57 billion.
Deputy Minister Jeong remarked, "Foreign investors highly appreciate Korea's sound manufacturing base, excellent free trade agreement (FTA) network, and stable supply chain system," and added, "If we seize good opportunities amid the global restructuring of production networks due to the U.S.-China conflict, we can attract more foreign investments than anticipated."