• South Korea is preparing for potential trade impacts due to Trump's possible return to presidency.
• President Yoon Suk Yeol anticipates positive momentum for shipbuilding and petrochemical sectors under Trump's energy policies.
• Trump's administration could bring shifts and unpredictability to the U.S.-South Korea alliance, increasing pressure on Seoul.
• South Korea is focusing on strengthening cooperation in advanced industries and maintaining a strong deterrent against North Korea.

South Korea is gearing up for potential trade impacts during the second Trump administration. President Yoon Suk Yeol recently called for the establishment of finance, trade, and industry consultative bodies.

This move is in anticipation of the potential impacts of former US President Donald Trump's return to the presidency. The call was made during an economic and security meeting with ministers and senior aides, a strategic move to discuss preparations before Trump assumes office in late January.

Yoon emphasized the potential shift in policies with the new U.S. administration. He pointed out that these changes could bring significant alterations to the global economy and security landscape. These changes, he added, would directly impact South Korea's economy and security, thereby necessitating thorough preparations.

Anticipating Positive Momentum and Strengthening Cooperation

Yoon also anticipated positive momentum for the shipbuilding and petrochemical sectors under Trump's energy policies. He highlighted the importance of strengthening cooperation in advanced industries. These industries include artificial intelligence, biotechnology, and quantum technology, all of which are rapidly evolving sectors with significant potential for economic growth.

During a phone conversation with Yoon, Trump expressed the U.S.' interest in working with South Korea in the shipbuilding industry. This interest particularly lies in naval shipbuilding, exports, and maintenance. Yoon noted the importance of maintaining a strong deterrent against North Korea, based on the robust South Korea-U.S. alliance.

Navigating the Unpredictability of the Upcoming U.S. Administration

A second Trump administration is expected to bring shifts and unpredictability to the U.S.-South Korea alliance. This could potentially increase pressure on Seoul to take on a larger share of the burden as a U.S. ally. Another key focus will be how Trump might address North Korea's denuclearisation.

This is especially crucial amid growing skepticism about Washington's commitment to this goal, as well as his approach to Russia's war in Ukraine, where North Korean troops have been sent to support Moscow.

In the past, similar situations have occurred where changes in U.S. administration have led to shifts in global economic and security landscapes. For instance, the transition from the Obama administration to the Trump administration in 2016 brought significant changes in U.S. foreign policy, impacting global trade, alliances, and security dynamics.