South Korea vows more policy support as US tariffs weigh
SEOUL—South Korea pledged on Wednesday more support measures for key export industries such as biopharmaceuticals and autos, as US President Donald Trump’s sweeping tariffs weigh on the trade-reliant economy.
Since Trump slapped tariffs on various products and announced 25-percent duties on South Korea, Seoul has prepared support packages for its auto and chip sectors, as well as for small- and medium-sized exporters.
“The government plans to prepare in advance for item-specific tariffs, such as pharmaceutical products and semiconductors, and strengthen support for ‘U-turn’ investments,” Acting Finance Minister Kim Beom-seok said.
New measures will be prepared to support South Korea’s biopharmaceutical companies, as soon as details of Trump’s tariffs on the sector become available, the government said.
Earlier this month, Trump signed an executive order aimed at reducing the time it takes to approve pharmaceutical plants in the country. The move is part of new regulations to encourage domestic manufacturing, coming after Trump launched probes into pharmaceutical imports in order to put tariffs on the sector.
South Korea’s exports of pharmaceutical products, one of the country’s key strategic sectors, stood at $9.59 billion in 2024, accounting for just 1.4% of its total exports. Still, 16% of the exports were shipped to the United States, the biggest market.
Seo Jung-jin, chair of South Korean drugmaker Celltrion, said last week it was postponing a decision regarding US contract-manufacturing operations by six months, though he expected the impact of new US policies to be limited due to its price competitiveness.
“It is still unclear whether entering the US is the right answer,” Seo said, citing high costs in the country, where the drugmaker earns nearly 30 percent of its total revenue.
Meanwhile, US Food and Drug Administration officials are visiting Samsung Biologics’ production facilities in Incheon, South Korea, on May 19 to May 27 for a regular inspection. The company did not provide further details but said it was not linked to the Trump administration’s surprise inspections of overseas plants.
Shares of Samsung Biologics rose more than 5 percent on Wednesday, leading the benchmark KOSPI’s 1.1-percent rise in early trade, while Celltrion stocks rose 0.5 percent.
