Korea Trapped in the Middle of Trade War

written by 20826 Hwang Da Wan

The world keeps developing in many ways, and the trade relations between each country are varying. The world's nations, including Korea, have links in all kinds of fields such as economy,  media, diplomacy and more. This is why it is natural for various benefits and losses to occur.

In the midst of this, the war that many media talk about called the U.S.-China War is making countries nervous.

 

What is the U.S.-China War?

The U.S.-China War is an economic conflict between China and the U.S. which is also called “The war without gunshots.” The U.S.-China War is causing many negative effects on the U.S. and China, such as rising consumer prices in the U.S. and slowing economic and industrial production in China.

If so, how will Korea, which has close trade relations with both countries, be affected by the U.S.-China war?

First of all, the war has had a major impact on Korea’s investment delay, financial market instability and exchange rate fluctuations.

In particular, Korean companies that interact with the United States and China often suffer direct damage.

The semiconductor industry, which has recently become an issue, is a representative example of the war. The U.S. has presented six conditions by disclosing the expected amount of investment in Korean semiconductor companies. Among them is the condition that says “Do not build high-tech semiconductor facilities or invest additionally in existing facilities in countries such as China, for 10 years” is noticeable.

Various opinions from people are mixed because following these conditions could have a negative impact on the Korean-Chinese semiconductor business.

The trade war is indeed affecting many countries in our world these days.

In this situation, the crisis should be used to find opportunities for Korea to develop. Efforts must be made to change this kind of situation,  through diversification of exports and response to the era of the 4th Industrial Revolution.