South Korean Exporters Expect 4.9% Decline Amid US Tariff Concerns

South Korean exporters are projected to face a nearly 5 percent decline in exports to the United States in 2025 if current U.S. tariff policies under President Donald Trump remain unchanged, according to a survey by the Federation of Korean Industries (FKI) and Mono Research. The electronics sector is expected to be the hardest hit with an 8.3 percent drop, followed by automobiles and parts at 7.9 percent, petroleum products at 7.2 percent, general machinery at 6.4 percent, semiconductors at 3.6 percent, and steel at 2.8 percent. Conversely, shipbuilding and biopharmaceutical industries anticipate increases of 10 percent and around 1 percent, respectively. Survey respondents expect overall revenue and operating profits to fall by 6.6 percent and 6.3 percent on average and cited increased uncertainty due to frequent tariff policy changes as a major challenge. A large majority believe the tariffs will negatively impact both South Korean and U.S. businesses, with many calling for government negotiation strategies to minimize tariffs and efforts to remove non-tariff barriers. Companies are also adopting measures such as diversifying export markets and restructuring global production and logistics to mitigate the impact of tariff tensions.