Korea's economy is weighed down by 'checking China'...U.S. presidential election, no matter who it is, "Fear" [This is news]

With the start of the U.S. presidential election, interest in the impact of the presidential election on the Korean economy is growing.

If former President Donald Trump, a Republican candidate, is elected, it is expected that strong protectionism and home-centrism will become a reality, hurting the Korean economy centered on exports.

In addition, even if Democratic candidate Vice President Kamala Harris is elected, "segmentation" of existing supply chains due to China checks will be inevitable.

This is also why there are many concerns that no matter who wins the U.S. presidential election, it will be a great uncertainty weighing on the Korean economy.

Analysts say that no matter who is elected, former President Trump or Vice President Harris, the policy of "checking China" is actually close to a constant.

China is Korea's largest trading partner, and if the U.S. checks reduce exports of Chinese finished products to the U.S., it will inevitably affect Korea, which exports intermediate goods to China.

In a report in August "Evaluation and Implications of Exports to China Considering Supply Chain Connectivity," the Bank of Korea estimated that a rise in tariffs as Trump wishes would reduce Korea's export-linked production by more than 6%, an indicator of how much China's production activities trigger Korea's production.

If the U.S.-China relations deteriorate due to the U.S. policy to check China, the existing global supply chain structure could also be reorganized in earnest.

It is by no means a welcome variable for South Korea, which relies on exports to the U.S.

However, some industries, such as semiconductors, observe that South Korea can benefit from the U.S. check on China.

AI Anchor|Y-GO
Edit Caption | Lee Mi-young


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