(Unofficial Translation)

“Going Further Together”

Fellow Koreans, distinguished international trading professionals, 

This year has been hard for everyone. International commodity traders have also suffered many difficulties under unprecedented circumstances. 

As the entire world slid into recession simultaneously, the volume of global trade has sharply decreased. Transnational movements have been blocked, requiring multiple efforts to make a single deal. Global supply chains have ground to a halt and container ships are in shortage, sending many international traders scurrying to find new suppliers and shipping networks.

However, the Republic of Korea’s trade has demonstrated its potential once again. We have turned our exports back into positive territory faster than other countries. The miraculous resilience of our exports – currently ranked 7th in the world – together with Korea’s successful response to COVID-19, has served as a driving force for our economic rebound beginning in the third quarter. 

The makeup of our exports is even more promising. Such key export items as semiconductors, automobiles and computers have played their anticipated role as a buttress. Our auto manufacturers, whose total exports ranked 7th in the world last year, are taking on the challenge to make Korea one of the big four globally. Our shipbuilding has been ranked 1st in the world in terms of new orders since the second half of this year, thanks primarily to LNG carriers.

It is particularly welcome news that the three new industries upon which my Administration has placed the top priority – system semiconductors, future cars and biohealth – have all achieved increases in exports by a large margin. Looking at performance just up to November, our biohealth exports have exceeded well over US$10 billion for the first time in history. Overseas shipments of electric vehicles jumped as much as 75 percent, opening the era of exporting more than 100,000 units. Hydrogen-powered vehicles also saw their exports soar as much as 35 percent. Moreover, exports of system semiconductors increased 15 percent, putting Korea on the path of becoming a comprehensive semiconductor powerhouse.

It is also a very meaningful change that strong exports of agricultural and fisheries food product as well as cosmetics have helped SMEs account for a greater percentage of overall exports. Korea broke the US$100 million mark in exports for the first time in 1964 and ushered in the era of US$1 trillion in trade in 2011. This year can parallel those years in marking a very precious milestone amid hardships. Celebrating the 57th Trade Day, I am truly grateful to our international traders for their hard work. My congratulations also go to all those honorees who received awards today. 

Proud international trading professionals,
 
All countries will engage in fierce competition to attain dominant positions in the resurgent global market after the COVID-19 pandemic. Protectionist winds will also be harsh. The era of digital trade will be fast approaching as discussions about reorganizing the international trade order to cope with climate change begin in earnest and a transition into a contact-free society gains speed. As we have always done, we must prepare for change one step ahead of the others and resolutely take on new challenges in the post-COVID-19 era by using our competency.
  
First, we must further strengthen the fundamentals of the Republic of Korea’s trade.
 
The most powerful weapon against protectionism is competitiveness in the making of quality products. We will pursue innovations by combining new digital technologies with conventional manufacturing and attain full-fledged technological self-sufficiency in materials, parts and equipment, thereby further enhancing our manufacturing competitiveness. We will continue to foster new growth engines – mainly in three new industries – that will spearhead our future exports.

Market diversification also constitutes a task that we must achieve without fail. We will further expand our FTA network, mainly targeting countries with immense potential that are part of the New Southern and New Northern policies. With the final signing last month of the Regional Comprehensive Economic Partnership – the world’s largest multilateral FTA – as a starter, we will finalize FTAs with Indonesia and Israel within this year and accelerate the conclusion of FTAs with India, the Philippines, Cambodia and Uzbekistan. Through the ongoing FTA negotiations on services and investment with China and Russia, we will help increase the export of Hallyu content and better protect intellectual property rights. By quickening negotiations with such MERCOSUR countries as Brazil and Argentina and with Mexico and other Pacific Alliance countries, we will bring the vast Central and South American markets closer. Participation in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership will also be subject to continued deliberations. Furthermore, we will play a leading role in international discussions, including at the WTO and G20, to restore free trade and multilateralism as well as to lower trade barriers.
 
Second, we must change the fundamentals of the Republic of Korea’s trade to be eco-friendly.
 
Carbon neutrality is an irreversible trend. As a responsible member of the international community, Korea is also moving forward to achieve the bold goal of becoming carbon neutral by 2050.

Not even trade can be an exception. The European Union and countries like the United States are already publicly discussing the introduction of a carbon border tax. Our exporters should switch energy sources at the earliest date possible and build eco-friendly infrastructure. They should lead the oncoming era of the green economy and preemptively eliminate possible disadvantages from anticipated trade regulations. Through the Green New Deal, the Government also promises to actively support the efforts of our exporters to move toward a low-carbon economy. 

Third, we also have to hasten preparations for digital trade.
 
The global e-commerce market is growing exponentially amid the COVID-19 pandemic. Online exports incur small transaction costs and have low entry barriers. It will open a window to new opportunities for SMEs entering the global market. We have the ability to get ahead in this area. The Government will cultivate a global export platform representing Korea. We will completely overhaul the export support system from trade financing to customs clearance and legal consultation, so it fits the digital trade era. In particular, we will identify 10,000 exporting SMEs and startups every year and actively help them enter the global market through digital trade. 

Fellow Koreans and international traders, 

Global trade is often called “war without gunfire,” but the beginning of trade is the desire to live well together. The Republic of Korea’s trade was able to lead the Miracle on the Han and surmount numerous crises because we were faithful to the basics of trade. Unlike countries that expanded their markets by running colonies in the past, we have competed fair and square within the framework of free trade and are among the world’s fastest growing traders though we were a latecomer.

The international trade environment is changing rapidly, but we will work together with our trade partners in a reciprocal manner through trade that benefits people.   

In the Republic of Korea’s way – faithful to the basics – our trading power will become even stronger, and the success story of both large companies and SMEs going further together will continue. 

Thank you.