By Kim Eun-jung
SEOUL, Nov. 29 (Yonhap) — South Korea’s trade minister said Tuesday his government will seek opportunities to work with the incoming U.S. administration in big infrastructure projects, pledging policy support for a “mutually beneficial” bilateral economic partnership.
Trade, Industry and Energy Minister Joo Hyung-hwan took a keen interest in U.S. President-elect Donald Trump’s plan to spend $1 trillion in infrastructure projects in the next five years to revive its economy, saying it opens new windows of business opportunities in both countries.
“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 (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 U.S.”
Joo Hyung-hwan, South Korean minister of Trade, Industry and Energy, speaks during a meeting with members of the American Chamber of Commerce in Korea (AMCHAM) held in Seoul on Nov. 29, 2016. (Yonhap)
Joo said American companies could form a partnership with Korean builders and investors to build roads, bridges and power grids “on time, on budget and of high quality,” hoping to jointly develop successful business models in other countries later on.
In response to Trump’s commitment to bring back factories to the U.S., Joo underscored big investment projects by major Korean conglomerates in the auto and electronics sectors, taking note of Samsung Electronics Co.’s $8 billion acquisition of U.S. audio maker Harman International and $1 billion investment plan in a semiconductor plant in Texas, both announced earlier this month.
“Collaborative activities like joint R&D, people-to-people exchanges, M&As and direct investment will not only strengthen partnerships between our business communities, but they will also help U.S. manufacturing and reshoring initiatives,” Joo said.
In the traditional energy sector, the top trade official said Seoul plans to import 2.8 million tons of shale gas next year and growingly increase condensate purchase from the U.S., its second-largest trading partner.
“For Korea, oil supply from a politically stable ally will help stabilize oil prices, and it will provide an additional layer for energy security,” he said. “For the U.S., exporting shale oil to Korea will help create new jobs and reduce the trade deficit against Korea.”
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