For South Korea, U.S. trade policy uncertainty is more critical than domestic politics: Goldman Sachs

Key Takeaways:

• Goldman Sachs emphasizes the significant impact of U.S. trade policy uncertainty on South Korea.
• U.S. trade policies are considered more critical to South Korea than domestic politics.
• Senior Asia economist Goohoon Kwon provides insights into this dynamic.
• The focus is on the profound effects of international trade uncertainties.
• The discussion was featured on CNBC on February 17, 2025.

U.S. Trade Policy Uncertainty More Critical for South Korea

Trade uncertainties stemming from the United States are having a more pronounced effect on South Korea than the nation’s own domestic politics, according to Goohoon Kwon, senior Asia economist at Goldman Sachs.

“U.S. trade policy uncertainty is more critical than domestic politics for South Korea,” Kwon stated, emphasizing the significant influence that international trade dynamics have on the South Korean economy.

Impact of U.S. Trade Policy on South Korea

Kwon discussed the effects of U.S. trade policies on South Korea, highlighting how uncertainties in these policies pose substantial challenges. The fluctuations and unpredictability in trade agreements can lead to economic instability, affecting South Korea’s growth prospects and market confidence.

Domestic Politics Take a Back Seat

While South Korea’s domestic political issues often attract significant attention, Kwon suggests that they are less impactful on the economy compared to international trade uncertainties. The external policies of major trading partners like the United States play a crucial role in shaping South Korea’s economic landscape.

Global Trade Dynamics at Play

Kwon’s insights shed light on the importance for South Korea to closely monitor U.S. trade developments. As a country deeply integrated into the global market, South Korea’s economic well-being is closely tied to the policies of its international partners.

Conclusion

The emphasis on U.S. trade policy reflects the interconnectedness of global economies and the significant influence that external factors have on domestic economic conditions. Kwon’s analysis underscores the need for South Korea to navigate international trade uncertainties carefully, as these external dynamics overshadow internal political issues in their impact on the nation’s economy.