GYEONGJU, Oct 29 — South Korea aims to deepen cooperation with the United States (US), stabilise supply chains with China, and diversify its trading partners to navigate global challenges, its top trade envoy said as the country hosts Asia-Pacific leaders for a trade forum.
Trade Minister Yeo Han-koo said it was still uncertain if South Korea and the United States could finalise a trade deal when US President Donald Trump visits on Wednesday.
"What matters most, however, is not the timing of the agreement but achieving a mutually beneficial deal that best serves our national interest," he told Reuters in response to written questions.
South Korea's political and economic high-wire act is on full display this week as President Lee Jae Myung hosts both Trump and Chinese President Xi Jinping, as well as leaders from a number of other Pacific Rim nations, for the annual summit of the Asia-Pacific Economic Cooperation grouping.
Cooperation is 'crucial'
Seoul has faced pressure from the Trump administration over trade imbalances and is seeking to avoid heavy tariffs by promising billions of dollars of investment.
South Korea, a close US military ally and one of its major exporters, does not have the leverage that China does, said the University of Southern California economics professor Baizhu Chen.
"Korea is a much smaller economy, and its security heavily depends on the US. Korea can only expect to push for the best result within the scope given," he said.
China's export controls have also squeezed Seoul, and Beijing recently sanctioned some South Korean shipbuilders for cooperating with the US amid a trade war between the two countries.
"It is true that heightened US-China tensions have created additional uncertainty that makes global businesses attentive to the possible outcome coming out of APEC this week.
"In a way, such circumstances make dialogue and cooperation within multilateral frameworks like APEC all the more crucial and timely," Yeo said.
APEC followed a Southeast Asia summit last week in Malaysia, where China pushed for multilateralism amid Trump's tariffs overshadowing the meeting.
Balancing act
The minister added that via tariff negotiations, South Korea will seek to strengthen cooperation with the US across sectors like semiconductors, batteries, biotechnology, shipbuilding, and nuclear energy.
The trade-reliant economy grew in the third quarter at the strongest pace in a year and a half, as exports remained resilient despite stalled trade talks with Washington.
South Korea's exports have been led mainly by strong technology demand this year, while growing car sales to Europe and emerging markets also offset a hit from high US tariffs on autos. Exports to Southeast Asia have also been a boost amid subdued momentum in US and China-bound shipments.
Yeo said that with China, Seoul will pursue multi-layered communication to continue cooperation to stabilise supply chains.
"It is clear that we must diversify our trading partners to reduce dependence on any single country and open up new opportunities," he said, vowing to expand networks with emerging economies across the Global South, while maintaining stable and strategic relations with the US and China.
Yeo, who signed a trade pact with Malaysia at the 47th Asean Summit and Related Summits in Kuala Lumpur last week, said South Korea will also pursue negotiations with Thailand and deepen cooperation with the region on digital transformation, supply chain resilience, and climate change.
South Korea will also initiate talks with countries in South Asia like Bangladesh and Pakistan for trade agreements.
