
US lawmakers see South Korea as serving a critical role in the global supply chain and are willing to provide support, Korean Industry Minister Ahn Duk-geun said Monday, sharing his reflection after his visit to Washington last week.
"During the trip, I learned that Korea’s industries play a big role in the global supply chain and the ecosystem. I met with foreign commerce chambers and investors after all the incidents, and they are all willing to help," Ahn said in a press briefing with reporters.
His US trip, coming before the inauguration of US President-elect Donald Trump, was the first ministerial-level interaction since the impeachment of President Yoon Suk Yeol and the prime minister, following Yoon's botched martial law attempt.
"I am aware there are a lot of concerns about a potential leadership vacuum, but all staff at the Industry Ministry remain in their positions, and we are doing our best to fill the gaps," Ahn said.
Regarding the fluctuating exchange rate and the weak won, the minister said the impact is "only limited," as Korea's exports are focused on high-value products such as semiconductors and secondary batteries, where price competitiveness is not the key factor for profit.
"We have found that exchange rates have had a minimal impact (on the economy) in the past five to 10 years. It mattered a lot 20 years ago, when we sought to sell as many products as possible at cheap prices," Ahn explained.
"Now, our major export goods are high-value and high quality products with stable brand value in the market, like chips and secondary batteries which are less impacted by currency fluctuations."
What companies are more concerned about are non-economic external factors, the uncertainties as they lead to hesitation or delays in placing orders, Ahn said. So his priority during the US trip was to promote Korea's robust economy and stability, to raise the country's external credibility, he added.
In his engagement with US lawmakers, think tanks and executives of major chip and secondary battery makers, Ahn urged them to maintain industrial incentives tied to programs like the Inflation Reduction Act, even after changes in administration.
"The administration and policy directions can change. What is more important here is not preserving the IRA act itself, but the incentives promised under these programs as they were the laws (that Korean firms considered) when they decided to invest in the US looking five to 10 years ahead," Ahn said. "The Senators and congressmen I spoke to agreed."
He said he was also able to meet with members of the Joe Biden administration, but his access to the incoming Trump administration was limited, under the US' Logan Act, that prohibits unauthorized US citizens engaging with foriegn affairs without permission.
Ahn also underscored how he signed a partnership agreement with the US Energy Department, which he hopes would settle the yearslong dispute between the state-backed firms regarding nuclear export deals.
"I think now the private sector will make efforts to settle pending issues constructively," Ahn said. He was referring to the dispute between Korea Hydro & Nuclear Power and Westinghouse Electric, a US nuclear energy firm, over a nuclear reactor export to Czech Republic.
By Jo He-rim (herim@heraldcorp.com)