00:00I wanted to start asking you about this immense optimism and solid trade numbers export numbers
00:06that we're seeing from South Korea. How much of that story do you expect to be derailed
00:11by the ongoing war in Iran. I think overall the Korea's export has been really robust.
00:19For example for the last 10th consecutive consecutive month the Korean export has been growing.
00:25And the last month which is the March our export hit the record level of 68 billion dollars for the
00:34first time.
00:35I think it's really driven by kind of strong demand for semiconductors around the world. So despite some concern related
00:43to all the tariffs
00:44and uncertainty in the Middle East I think the Korean export has been really showing robust performance so far.
00:54Is there a risk that a lot of the materials and NAFTA rubber resin a lot of the things that
01:01could potentially go
01:02into the supply chains especially around tech exports will be hit and given the ongoing conflict in the Middle East.
01:11Yes. In fact this the supplies of the NAFTA and you know these are being screwed. So we are taking
01:19you know domestic measures to kind of restrain the export of this NAFTA.
01:25At the same time we really make all our efforts to secure more NAFTA from you know other region than
01:34the Middle East.
01:34Previously 80 percent of NAFTA came from the Middle East. So we are exposed to this kind of potential risk
01:42in the region.
01:44And now I think diversifying is really a way to go. So now we are making all these efforts to
01:50find new alternative sources and partners for this.
01:58Have you made. Have you gotten any commitments from Asian partners. I know that you've been to India. You've been
02:04here in Japan.
02:05You're in Singapore right now. Yes. The last week the Korean president made a state visit to India.
02:14Korea and actually the Korea and India sign MOU on this cooperation in energy and you know this the sector.
02:24And yeah I mean I think all these other countries are also struggling
02:29with this shortage of NAFTA and other the petrol you know chemical products. But we are making efforts.
02:40I know that you've had perhaps some concerns coming from Indian authorities as well about the separate trade deal and
02:45how balanced it is.
02:47Will that have any implications to how much cooperation you can get from them. Yeah I think we had a
02:55really this great agreement last week in India
02:58to really accelerate this upgrade negotiation for Korea India separate. I think we have really this great potential.
03:07I mean our economies are complementary. A lot of Korean businesses in automobile electronics and shipbuilding.
03:14They are they have invested in India and that they are considering investing in India. So I think upgrading this
03:21almost you know 17 year old.
03:24The framework of trade investment will actually will boost to further trade investment between our two countries.
03:32And one of the trade deals that we're watching the most is the one between South Korea and the United
03:36States. Right.
03:37Can you give us an update on the implementation of the three hundred and fifty billion dollar U.S. investment
03:42package.
03:43Have you chosen your first project. We're hearing that it could be the Louisiana LNG export project.
03:52Not yet. But I think we are on the right track. The last March Korea's National Assembly passed a special
04:00law to the operationalize
04:02this three hundred fifty billion dollar investment fund. So now we are in the process of creating new government agency
04:12to execute this investment project.
04:15the project. So now we are in a preparatory mode exploring you know what kind of project could be really
04:23mutually beneficial.
04:24I think what is important to Korea is to really make sure that those project commercially viable and mutually beneficial.
04:32If that happened if that's the case I think this could be turned into a really new opportunities for many
04:38Korean companies to invest
04:40and afford a stronger partnership in manufacturing sector with the United States. Does the Louisiana LNG export project count as
04:49one of those feasible ones.
04:53I think that I mean we are not at this stage to really reveal what kind of project are being
05:00explored and then discussed.
05:02But I think we are open minded about this mutually beneficial and the strategic important those project in energy and
05:13many other sectors.
05:16What's difficult for South Korea and other partners is that the U.S. has also opened a new 301 probe
05:22right into excess capacity.
05:24Any more updates on what's going on there and how you plan to mitigate the benefits that you've gotten from
05:30the trade deal so far in the commitments.
05:34Yeah last November our two leaders have agreed on this trade deal in APEC summit in Gyeongju.
05:42And we are in the process of you know the faithfully fulfilling this into implementation. But with this the Supreme
05:51Court ruling on IPA.
05:53I think right now what U.S. is trying to do is to restore the previous level of a tariff
06:00of you know with the through one investigation.
06:03So now we are in really productive and close consultation with the U.S. to really make sure that our
06:12trade deals are being will be honored.
06:14And the stability stability will brought back will be brought back to our mutual you know the bilateral trade.
06:22And of course a minister a key issue is also what's happening between the relationship between China and the United
06:28States.
06:29What do you hope to see or expect to see from the President Trump President Xi Jinping meeting in May
06:35that could help potentially the global trade environment
06:38and what's happening between South Korea and these two partners as well.
06:44Yeah right now the China is our number one trading partner and the U.S. is number two.
06:50But it's a really kind of neck and neck. So I think it is in our interest to see that
06:56stabilization of this U.S. China trade relations bringing you know the real life.
07:04So we hope to see that some more predictability and more stability could be secure through this kind of the
07:15high level talks.
07:18And of course minister given of course the tensions between the U.S. and China the geopolitical tensions of course
07:24in the Middle East the war in Ukraine.
07:26We have seen incredible focus on the defense industry here in Japan the government has lifted restrictions on lethal weapons
07:34exports.
07:35Do you expect to have that a meaningful impact on the competitive edge of South Korea's defense industry which was
07:43also huge.
07:46I think that's Korea's defense industry is actually one of the strongest because we have a really strong manufacturing base.
07:56And I mean for the last because of unique the security environment in the Korean Peninsula.
08:02I think this the Korean defense industry sector has continued to develop their supply chain.
08:09So now I think this the defense industry sector sector could emerge as one of the strong engines for you
08:19know export from Korea's point of view.
08:22And I think we you know exploring all these possible multilateral as well as bilateral cooperation to in this defense
08:33industry sector with key partners around the world.
08:37We had the news of course last week of the Japanese government rejecting for example the buyout of one of
08:45the companies Makino by MBK for example.
08:48Will that alter the relationship between Japan and South Korea and what would that mean for future cooperation.
08:58We also learn of this case and but I think this is a kind of specific business case. So we
09:05are looking into this case right now.
09:08But I think it's too early for for me to make any kind of comment on this.
09:15Minister then before I let you go how long do you expect this what some are calling the super cycle
09:20in tech in the tech industry especially with semiconductors to last.
09:25And will it get derailed or is there the risk of getting derailed by not only the geopolitics around the
09:31Iran war and the supply chains but just the cyclicality of this sector in general given how much the Korean
09:37economy depends on this industry.
09:43Yeah indeed. Right now I think the one of the strong driver for for our growth in terms of GDP
09:50and experts seems to be coming from the semiconductor industry.
09:55And as you mentioned this is highly cyclical. But I think what is important to Korea is to also diversify
10:02our source of industrial growth as well as exports.
10:07So if you look at this our export performance not just this semiconductor sector but also these newly emerging sectors
10:17for example this K culture related beauty products and food and also cultural content.
10:24They are also emerging as a new engine for the growth and exports. So I talk about the diversification in
10:33terms of energy sources but not just that diversification.
10:36But in terms of our own industrial and export strategy I think diversification seems to be the key and the
10:43core strategy for us.
10:44To off the market is muted.たい.
10:44I think there is important and want us to note that at the same time it is. To cause
10:44this league again through China is a project evolve Betama odds. To cause
10:45this league again through water is a drought in the tank like there are are marketancers. To cause
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