SEOUL, South Korea’s industry minister on Wednesday called for diversifying the country’s export portfolio to adapt to the global supply chain reshuffle and achieve this year’s record shipment target.

“In 2024, exports are expected to maintain the growth as the chip industry is expected to begin its full-fledged recovery, with the automobile and ship sectors remaining robust as well,” Industry Minister Ahn Duk-geun said during a video meeting with commercial attaches.

“However, uncertainties persist externally due to shifts in political leaderships and geopolitical risks,” Ahn said, noting that the country’s economic conditions remain challenging as well.

The industry minister added the government needs to set up well-planned strategies to cope with the restructuring of the supply chain, climate change, digital transition as well as changes in demographics.

Ahn also emphasized the importance of diversifying South Korea’s export portfolio, which currently depends more than 50 percent on the U.S., China an
d Southeast Asia.

“The EU, the Middle East, India and Japan are essential strategic markets which South Korea needs to penetrate into in order to diversify its export portfolio and meet the target,” Ahn said.

The government needs to work with the private sector to address Europe’s environmental regulations, as well as to participate in the Middle East’s efforts to foster the manufacturing industry.

South Korea plans to send a trade delegation to the Middle East to further utilize the free trade agreement with the Gulf Cooperation Council, which was struck in late December, he added.

The country currently plans to have its exports reach a new record of US$700 billion in 2024. In 2023, exports fell 7.4 percent on-year to $632.6 billion amid the sluggish performance of chips coupled with global economic uncertainties.

Source: Yonhap News Agency