South Korea pledges support for biopharmaceutical and auto industries amid U.S. tariffs

In recent developments, South Korea's government has announced additional support for its key export sectors, particularly the biopharmaceutical and automotive industries, as a response to anticipated sweeping tariffs from the United States. On Wednesday, May 21, 2025, officials emphasized that they will devise new measures specifically targeting biopharmaceutical companies once the details of the U.S. tariffs become available. This proactive approach reflects the government's commitment to safeguarding its industries, considering that a significant portion of South Korea's pharmaceutical exports, valued at $9.59 billion in 2024, is directed towards the United States, which serves as the largest market. Earlier this month, U.S. President Donald Trump signed an executive order aimed at accelerating the approval process for pharmaceutical manufacturing plants within the United States. This regulatory shift is part of a broader strategy to enhance domestic production capabilities and follows investigations into pharmaceutical imports that may lead to the imposition of tariffs on foreign goods. In the context of South Korea, 16% of its pharmaceutical exports are directed to the U.S., making them vital for the country's economy. Yet, even with these exports accounting for just 1.4% of its total exports, the government recognizes the potential adverse impacts of U.S. tariffs on these industries. Beyond the pharmaceutical sector, South Korea's government is addressing concerns regarding other key industries affected by the tariffs, including automotive, semiconductor manufacturing, and steel production. Last month, the South Korean administration unveiled initial support packages aimed at helping these sectors cope with the pressures from the U.S. tariffs. However, officials indicated that they would be willing to implement further support measures if necessary, reflecting an adaptive strategy to mitigate any potential economic fallout. To address ongoing trade tensions, South Korea has engaged in multiple rounds of talks with U.S. officials. Following the second round of ministerial-level discussions last week, the South Korean government is now participating in working-level negotiations in hopes of gaining exemptions from the U.S. tariffs. This proactive measure reflects an awareness of the volatility in global trade dynamics and highlights South Korea's focus on maintaining its trade relationships, particularly with the U.S., which remains a crucial partner for its export-driven economy. Overall, while South Korea's exports have shown resilience in the face of these challenges, the government remains vigilant as it navigates the complexities of international trade negotiations and tariff implications.