Korea’s trade minister vows policy support for Trump’s infrastructure plan

South Korea’s trade minister vowed Tuesday in a meeting with US business representatives to provide policy support to boost Korea-US bilateral cooperation in line with the new US administration’s future drive in infrastructure and manufacturing.

Joo Hyung-hwan, minister of trade, industry and energy, said he is seeing new opportunities in US President-elect Donald Trump’s campaign pledge to spend $1 trillion in infrastructure projects in the next five years to prop up the US economy.

“Considering the president-elect’s commitment for tax cuts, his infrastructure upgrade projects would likely require financing through partnerships with private or international investors, or both. Such collaboration will surely provide new opportunities for our business communities,” Joo said during a meeting with members of the American Chamber of Commerce in Korea, or AMCHAM.

“The Korean government will provide all necessary policy support for deepening our bilateral collaboration in infrastructure, manufacturing and energy, and other new and ongoing business activities between Korea and the US.”

Joo highlighted large investment projects by Korean conglomerates in the auto and electronics sectors, citing Samsung Electronics’ recent $8 billion acquisition of US audio maker Harman International.

More joint activities in research and development, mergers and acquisitions and direct investment would be conducive not only to Korean companies but also US manufacturing initiatives, he said. 

In the energy sector, the government will import 2.8 million tons of shale gas next year which will help the US create jobs and reduce a trade deficit against Korea, he said.

The minister also vowed to take business-friendly measures in Korea such as deregulation to improve the investment environment for foreign-invested firms.

Joo said the free trade agreement between Korea and the US should be enhanced further, saying the deal has produced mutually beneficial results for both countries since it was clinched in 2007. His comments came as Trump is expected to take a strong protectionist stance and demand for a renegotiation of the trade deal with Korea.

His meeting with AMCHAM was attended by more than 100 participants including AMCHAM Chairman James Kim, AMCHAM President John Schuldt and Mark Lippert, the US ambassador to Korea.