Korean Products Face Global Import Regulations: Challenges and Opportunities for Korea's Export Industry

Korean products are increasingly becoming targets of global import regulations

Korean products are increasingly becoming targets of global import regulations. With the rise of protectionism and growing concerns over a potential U.S. economic downturn, Korea’s export industry is facing significant challenges. This article explores the current situation, the issues Korea is encountering, and suggests potential paths forward.

Recently, there has been a sharp increase in global import regulations targeting Korean products. According to a report by the Korea Trade-Investment Promotion Agency (KOTRA), as of the first half of 2024, a total of 26 countries have imposed import restrictions on Korean exports, with 214 cases reported. This marks a continuous increase from 166 cases in 2015, driven primarily by the spread of protectionism and the rise of "America First" policies.

Both developed and emerging countries are intensifying their scrutiny of Korean-made products to protect or foster their own manufacturing industries. Countries like the United States, the United Kingdom, and Canada have extended existing import regulations or introduced new ones, while emerging economies such as India, Turkey, South Africa, and Vietnam have initiated new regulations on Korean steel and petrochemical products. These regulations focus heavily on Korea's heavy chemical industry products, reflecting a strategy by these countries to protect and develop their own industries.

Additionally, fears of a U.S. economic recession are exacerbating the risks associated with Korea's heavy reliance on exports to the U.S. In the first half of 2024, Korea's exports to the U.S. reached a record high, but concerns are growing that a potential economic slowdown in the U.S., coupled with a cooling of the artificial intelligence (AI) boom, could lead to a decline in exports. Key export items such as semiconductors, IT products, and electrical equipment could be significantly impacted.

However, it is still too early to predict the direction of exports with certainty. While U.S. economic indicators show mixed signals, there are still positive signs. Korea must closely monitor the situation and strengthen its response strategies accordingly.

As global scrutiny of Korean products intensifies, Korea must develop appropriate countermeasures. In an era of increasing protectionism and nationalistic trade policies, the global economic environment is becoming more uncertain. In response, Korea should diversify its export markets, enhance product competitiveness, and adhere to international trade norms to overcome these challenges. Now, more than ever, is a crucial time for Korea to maintain and strengthen its position in the global economy.