Yeo Han-goo, the head of the Trade Negotiation Bureau at the Ministry of Trade, Industry and Energy, stated on May 29 that despite increasing volatility in exports due to factors like the Middle East conflict and U.S. tariff policies, South Korea is turning these challenges into opportunities. He emphasized that electric equipment has established itself as a key export industry for South Korea, and the government will provide comprehensive support to ensure continued growth in exports.
Yeo made these remarks during a meeting with the electric equipment industry at HD Hyundai Electric.
In the months of March and April, exports exceeded $80 billion for two consecutive months, with electric equipment exports, including transformers, circuit breakers, cables, and motors, also showing an upward trend. Last year, electric equipment exports reached $16.7 billion, marking a 7.2% increase from the previous year and setting a record. From January to April this year, exports continued to grow by 3.8%.
This growth is significantly influenced by the global expansion of artificial intelligence (AI) infrastructure and ongoing policies for transitioning to eco-friendly energy. Additionally, the replacement of aging power grids in the U.S. is driving global demand, suggesting that this year could also see record performance in the sector.
To support the continued growth of electric equipment exports, the Ministry of Industry held this meeting to mark the first anniversary of the Lee Jae-myung administration. Companies attending the meeting requested assistance in stabilizing supply chains for raw materials and other resources to maintain stable business operations and exports amid global uncertainties.
The ministry plans to provide extensive support to ensure that the electric equipment sector and other industries can sustain their export momentum. This includes expanding trade insurance to a record 275 trillion won this year, with 114 trillion won allocated for small and medium-sized enterprises. Furthermore, financial support for large-scale projects in nuclear power, defense, and electric equipment will be increased to 127 trillion won over the next five years.
Regarding the electric equipment industry, the ministry aims to support the entire process from identifying global energy infrastructure projects to matching companies and providing proactive financial assistance in response to the growing demand from global AI data centers.
Yeo stated, "Despite the instability in international circumstances, our electric equipment industry is leading the global market with its exceptional technological capabilities. The government will do its utmost to expand the operational scope of our companies through trade channels with major countries to maintain our leadership in the global market."
* This article has been translated by AI.
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