In the Trump era, what is the way for Korea to go amid the U.S.-China conflict?

■ Host: Anchor Jeong Jin-hyung and anchor Lee Eun-sol
■ Starring: Minister of Trade, Industry and Energy Ahn Deok-geun


* The text below may differ from the actual broadcast content, so please check the broadcast for more accurate information. Please specify [YTN New Square 8PM] when quoting.

[Anchor]
Back in the Trump era, the U.S. is expected to raise tariff barriers and strengthen protectionism. Tensions in the industry are also rising amid concerns that Korean electric vehicle and battery companies will abolish or reduce the inflation reduction law, which has benefited from subsidies. Let's take him to the studio of Minister Ahn Deok-geun of the Ministry of Trade, Industry and Energy and look at the direction our industry should go. Please come in. First of all, I heard that you attended the APEC meeting in Peru today and returned today.
Please introduce what kind of achievements you had.

[Andeokgeun]
Korea will hold its first APEC meeting in Gyeongju next year for the first time in 20 years. So, as the next chairman, various issues were discussed this year under the theme of sustainable and cuddly economic growth. It played a responsible role and in particular included a text on the carbon-free energy initiative that our government is leading in this joint summit declaration. Therefore, we created an important opportunity to secure support by consensus once again in the international community on the global agenda led by our government. This time, with Peru, the chair country, we have signed eight MOUs in these areas such as core minerals and defense, creating a good opportunity for companies and our industry to advance.

[Anchor]
Let's take a look at the results of the APEC summit, which ended in Peru. Meanwhile, let's look at the U.S. presidential election. Former President Trump won, reeling from our stock market and exchange rate market amid the so-called Trump rally. Today, the party and the government are preparing for the second Trump period. Aren't you originally a professor who majored in the field of commerce? That's why I think you're more of an expert. How do you think Korea's trade policy should proceed?

[Andeokgeun]
Recently, the Trump administration's launch of various international geopolitical risks will create another factor of uncertainty. For a country with such a diverse portfolio like ours, taking the network as wide as possible can usually find the answer to our companies' ability to quickly create alternatives and flexibly overcome problems in the event of unexpected situations. So, our government is now focusing on creating a wide and diverse trade network. In that sense, Korea not only has FTAs with major partner countries such as the United States, China, Japan, and the EU, but has also recently signed FTAs with Middle Eastern countries. After visiting Peru and Brazil this time, we plan to make efforts to create a deeper trade network with the remaining South American markets in the future.

[Anchor]
You just pointed out the importance of a wide range of trade networks, but in fact, aren't both the United States and China our largest trading partners by Korean standards? However, it is true that there are voices of concern that Korea will be in trouble in the middle as the U.S.-China conflict deepens. But what is the position of our government on this?

[Andeokgeun]
As the President emphasized this time, Korea is trying to lead a stable relationship as an important economic partner for both the United States and China. So, with the Korea-U.S. alliance as the foundation, we are leading a stable and mutually beneficial industrial cooperation relationship with China. We are trying to continue to lead stable supply chains and industrial cooperation with both countries.

[Anchor]
Based on the Korea-U.S. alliance, we will continue to communicate with China. Trump's transition team, the IRA created by the Biden administration, is planning to abolish the Inflation Reduction Act. Isn't there any news like this? Not long ago, foreign media reported that the tax credit for electric vehicles could be abolished, so what is the government's position as a countermeasure?

[Andeokgeun]
Regarding the abolition of the IRA, there are areas where such parts have been discussed in the election pledge, but there are issues that remain to be seen to what extent it will become a reality. Because there's this legislative aspect, and the states where our companies are mainly investing on IRA benefits are the main Republican states. So because the state is different from the federal government, and there's a lot of state support, and there's a lot of state support, even if the federal government reduces or suspends support, there's a lot of state support. So, we continue to communicate with related companies and related industries, and we plan to do our best to prevent damage to our companies as much as possible by monitoring what policies the new U.S. government will implement.

[Anchor]
So are you saying that it may not be abolished or reduced?

[Andeokgeun]
There may be some downsizing, but in the first Trump period, there were also measures such as the policies that President Trump promoted were quickly sued, found to be illegal, and withdrawn. Also, since there is a policy promoted by the state government, we are closely watching what measures are being implemented rather than what we do too hastily.

[Anchor]
In this regard, many Korean companies can be affected, so we have to wait and see until the end. Next, it is the most important matter in the appointment of the cabinet of the second Trump administration. In a way, the Trump administration will be set up to the point where there is a saying that this is loyalty, and then it will push unchecked policies. Then, in this situation, Korea should have its own strategy to communicate closely with the United States. What strategies are there?

[Andeokgeun]
When the new government is launched, I think we will have to build a solid Korea-U.S. alliance with the Trump administration on the same level of trust and consensus that our government is building with the Biden administration. I believe you can do it. In the meantime, we have been working on various outreach and contacting key figures. For example, last month, I talked about energy policy while meeting with the governor, who visited as governor at the time, and he was appointed chairman of the National Energy Commission this time. That's why we've been in constant contact and communication with senators, congressmen, and other governors when they've been visiting Korea. It is legally difficult to contact the transition team during the transition period. However, once it is officially launched, we will do our best to increase communication and contacts to increase trust and build a consensus in the future so that we can continue our solid relationship in many areas, whether it is security or economy between Korea and the U.S.

[Anchor]
Did you communicate well?

[Andeokgeun]
Overall, there are many areas in which Korea and the U.S. can win-win industrial cooperation relations, especially in the energy sector. Not long ago, when our president talked on the phone, President Trump asked us to do shipbuilding, defense, energy, and high-tech industries. In many fields, there are many areas where Korea and the U.S. can win each other industrially and economically. We will do our best to make good use of that part so that our companies can create another new opportunity.

[Anchor]
He pointed out that we will find the right time and communicate. Now we are at the halfway point of the Yoon Suk Yeol government's term. There have been so many different issues in the industrial field, and I wonder how you evaluate it and how you expect it in the future.

[Andeokgeun]
When we launched, we started with a very bad economic situation, but we are working hard this year to forecast the largest export and investment performance ever. So, the part of the Ministry of Industry is the most proud of that it has rejuvenated the vitality of the industry. And we believe that the ecosystem of the nuclear power industry, which has been very difficult, has now been completely normalized and restored. By creating an opportunity to export nuclear power plants to the Czech Republic, we have secured the status of preferred negotiators now, but we believe it will go well. So, not only the basis of Korea's energy policy, but also the high-tech industry in the future has normalized such industries that can grow very significantly in the global market, and the most important issue is to grow high-tech industry super-gap technology, and I think we have put a lot of effort into this area through various policies.

[Anchor]
In the case of the Minister, whenever there are issues such as winning orders for Czech nuclear power plants and deep-sea gas fields, he visits our YTN studio, which will begin in December. I know there have been reports like this about blue whale drilling. But I was wondering how it's going now.

[Andeokgeun]
The location of the borehole and its adequacy have been evaluated by experts. Next week, we plan to finally approve and finalize it through our development strategy meeting on the 27th, and now proceed with actual drilling as scheduled. If that happens, I think we will be able to inform the people of the results in the first half of next year.

[Anchor]
The result will be in the first half of next year at the latest.

[Andeokgeun]
In the first half of the year, we will be able to analyze the samples that are drilled and come up and explain in detail how much potential there is.

[Anchor]
Does that make the possibility clearer, then?

[Andeokgeun]
That's right. We have the data we have after conducting a technical evaluation. From the data alone, it has a very high level of potential. If you actually drill it and dig it up to 3,000 meters underground, you can see if it matches our technical evaluation on each floor, what is different, how economical it is. We can analyze these things and let the public know in detail how to make future plans and how to drill afterwards.

[Anchor]
Then, if the possibility is low at that time, it could be stopped, right?

[Andeokgeun]
In our view, we have created seven promising structures, and drilling is a drill that is about 30cm long. As a result, there is a possibility that it may not be possible to dig one more, so we plan to explore more likely areas in the surrounding area, especially in the future, to attract foreign investment and jointly drill with technological foreign companies.

[Anchor]
Exports of semiconductors, which are traditional good items, reached an all-time high as of October. It's been going high for 13 months. How do you rate this?

[Andeokgeun]
We have been running since the beginning of the year with the goal of achieving the largest export performance ever, and the last two months are left, and in a way, we are on the verge of climbing the Himalayas. Just as there are always many unknown variables at the top of the mountain, difficult variables are happening now, and we will do our best to achieve the largest export performance this year and to boost the vitality of the industry once again.

[Anchor]
Let's stop here. I pointed out the direction our industry should move forward with Minister of Trade, Industry and Energy Ahn Deok-geun. Thank you for talking today.