Jeong Ing-gyo, head of the Ministry of Trade, Industry and Energy's trade negotiation headquarters, noted on the 17th, "It is expected that the impact of tariff imposition by the United States will emerge starting in the second quarter exports."
On the same day, Deputy Minister Jeong stated at the 'Export Regional Managers' Meeting,' "Unprecedented uncertainty continues, and the industry is feeling anxious," adding, "We will work with relevant agencies to assess the regional situation and promptly develop response measures for corporations' export difficulties."
He checked the export situation and risk factors by major market along with the Korea Trade Insurance Corporation, Korea Trade-Investment Promotion Agency (KOTRA), and the Korea International Trade Association. Exports in the first quarter of this year reached $159.8 billion, down 2.1% compared to the first quarter of the previous year. Exports to the U.S. dropped by 2% ($30.3 billion) compared to the first quarter of the previous year due to declines in automobile and general machinery exports, while exports to China fell by 6.7% ($28.8 billion) due to a decrease in semiconductor exports. In contrast, exports to the Association of Southeast Asian Nations (ASEAN), the Middle East, and India increased by 6.4%, 3.4%, and 0.9%, respectively, compared to the first quarter of the previous year.
The government decided to respond quickly to the heightened uncertainty caused by the U.S. tariff imposition. The Korea Trade Insurance Corporation plans to support the alleviation of export financial difficulties by offering discounts on insurance premiums for corporations impacted by tariffs, expanding insurance limits, and increasing loan guarantees for small and medium-sized corporations. KOTRA will actively pursue customized support for export corporations' on-site difficulties through 'Tariff 119' and promote the development of alternative markets. The Korea International Trade Association plans to actively conduct outreach related to U.S. trade while analyzing the export impacts based on different tariff scenarios.