- South Korea strengthens economic ties with the US amid US-China tensions.
- Focus areas include shipbuilding, energy, minerals, and semiconductors.
- Korea Zinc invests in non-China supply chains, expands US exports.
South Korea is proactively seeking "China-free" supply chains by enhancing its economic relations and initiating new investments in the United States. This strategic change occurs in the context of persistent trade conflicts between the US and China, presenting both chances and dangers for worldwide economies, including Korea.
According to the Korea Herald, President Lee Jae Myung's government is emphasizing economic collaboration with Washington, especially in shipbuilding, energy, and essential minerals. Although a meeting between President Lee and US President Donald Trump at the G7 summit was scheduled but did not take place, a summit is expected at the forthcoming NATO summit.
Both the US and South Korea are focused on enhancing their economic relationship since President Lee assumed office earlier this month. The two nations anticipate seeking collaboration in shipbuilding, energy, and essential minerals, in addition to discussing the US-imposed tariffs on Korean exports.
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Korean companies are rapidly adjusting to this changing economic environment. The Korea Herald states that SK Group Chairman Chey Tae-won has talked with President Lee about strategies for collaboration between Korean industries and the US in fields such as AI, semiconductors, and mobility, highlighting how Korean firms can assist the US in its efforts to minimize reliance on China within supply chains.
A major step in this direction was Korea Zinc's USD 85 million investment to secure a 5 percent ownership in The Metals Company, a Canadian deep-sea mining company specializing in metals for electric vehicles and low-carbon energy. Korea Zinc claimed this investment establishes them as a key participant in non-China supply chains, thanks to The Metals Company's assets and technologies that are independent of China.
Moreover, Korea Zinc recently completed its initial export of antimony, a crucial component utilized in electronics and military goods, to the US, indicating its growth in the American market.
Korean Industry officials anticipate that," Once allied economies such as Korea and the US begin discussing specific areas of cooperation through summits, companies are projected to be in step with them and move quickly."