Korean Chamber of Commerce and Industry, Korea-US Industrial Cooperation Conference…”Continued Pressure on China and Domestic Investment Regardless of US Election Outcome”
“Potential Reduction of IRA Benefits under Trump Administration… Inevitable Impact on Korean Battery Companies”,
On the morning of the 11th, the first TV debate between Democratic candidate Kamala Harris and Republican candidate Donald Trump was broadcast live, hosted by ABC at the E-land electronics store in Yongsan-gu, Seoul. 2024.9.11/News1 ⓒ News1 Kim Sung-jin Reporter,
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, ‘(Seoul=News1) Reporter Kim Jae-hyun = Ahead of the upcoming US presidential election in November, it is expected that regardless of who wins, the trend of US pressure on China and increased domestic investment in the semiconductor industry will continue. In the battery field, there are concerns that if Republica…’,
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, “The Korean Chamber of Commerce and Industry and the Korea-US Association held the ‘Korea-US Industrial Cooperation Conference’ at the Korea Chamber of Commerce and Industry in central Seoul on the morning of the 23rd.”,
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, ‘Experts in the semiconductor and battery industries from Korea and the United States discussed the potential impact of the US election results on these industries and strategies to respond. Choi Jung-kyung, President of the Korea-US Association, explained the background of the event by stating in his opening remarks, “Both US candidates will see Korea as an important partner not only in diplomacy and security but also in the economy and industry,” and emphasized the need for active private-sector cooperation discussions between the two countries.’,
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, ‘Experts in the semiconductor field predicted that regardless of the election outcome, US pressure on China and domestic investments related to semiconductors will continue.’,
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, ‘In his keynote presentation, Professor Kwon Suk-jun of Sungkyunkwan University’s Department of Chemical Engineering and Polymer Engineering stated, “If Democratic candidate Kamala Harris is elected, there is a high possibility of establishing an advanced technology export control organization similar to COCOM (Coordinating Committee for Multilateral Export Controls) with allied countries to pressure China and enhance domestic investment incentives through amendments to the Chips Act.” He also anticipated that “if Trump is elected, methods of pressuring China and increasing domestic investment will unfold in the form of strengthening the Guardsrail provision in the Chips Act and enhancing allied country investment requirements to receive subsidies.”‘,
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, ‘Gary Clyde Hufbauer, Senior Fellow at the Peterson Institute for International Economics, who participated in the panel discussion, forecasted, “Regardless of who wins the US presidential election, the Chips Act, which has made a significant contribution to semiconductor investments in the US, is unlikely to change,” but added, “There is a greater possibility of expanding subsidies under Trump, who is more interested in spending on social welfare than Harris.”‘,
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, ‘Shin Chang-hwan, a professor of semiconductor engineering at Korea University, remarked, “US policies on semiconductor investment and research and development (R&D) are expected to continue under both candidates with a focus on national security and improving economic strength.”‘,
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, ‘Professor Kwon emphasized the importance of Korea occupying an irreplaceable position as a key partner with the US in various areas, including high-performance AI-specific memory chips, advanced technologies, standard and roadmap settings.’,
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, ‘Ahn Ki-hyun, President of the Korea Semiconductor Industry Association, stated during the panel discussion, “Monitoring and proactive response are necessary to prevent domestic companies from suffering losses,” and added, “In order for the domestic semiconductor industry to secure global competitiveness, direct subsidies like other major countries are needed.”‘,
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, ‘Experts in the battery industry expressed concerns about the possibility of reducing IRA benefits under a Trump administration. Lucas Bednarski, author of the presentation on the “battery war” via video link, stated, “If Harris is elected, the overall policy orientation, including IRA, in the battery sector is likely to be maintained, but if Trump is elected, there is a potential impact on Korean battery companies due to the reduction of IRA benefits.”‘,
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, ‘Choi Jong-seo, Director-General of the Korea Battery Industry Association, said during the panel discussion, “If the Trump administration utilizes its administrative authority to reduce the scale of IRA support upon returning to power, our companies will inevitably suffer.”‘,
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, ‘Hwang Kyung-in, Deputy Research Fellow at the Korea Institute for Industrial Economics and Trade, pointed out the need for internalization of battery raw materials and diversification of procurement sources as it is anticipated that the policy of removing China from the battery supply network will continue regardless of the election outcome.’,
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, ‘Jung Kyung-yoon, Director of the Sustainable Future Technology Research Center at the Korea Institute of Science and Technology, emphasized, “The US prioritizes the interests of its own companies, and like Ford circumvented IRA earlier this year to form a joint venture with CATL, it is unlikely to completely exclude Chinese batteries,” and stated, “Concentrated technological development by companies and the government to secure technological superiority in competition with China is crucial.”‘,
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, ‘Park Jae-beom, Senior Research Fellow at the POSCO Research Institute, added, “The government should enhance support for Korean companies in mineral resource securing, material processing, and production to move away from dependence on the Chinese supply chain and become a key partner in the US supply chain sector.”‘,
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