Lee Chang-yong "Korea-U.S. trade agreement reduces uncertainty… tariffs to have major impact from the second half"

Lee Chang-yong, Governor of the Bank of Korea, said in an interview with the BBC, "The trade agreement between South Korea and the United States has significantly reduced uncertainty."

In the interview broadcast on the morning of the 18th, he said, "It would be really good if we could develop joint investments that combine the United States' basic science capabilities with South Korea's manufacturing and applied technology capabilities."

On the impact of tariffs on the United States, he said, "Data were not bad in the first half of this year thanks to strong exports," and added, "I expect a larger impact in the second half."

He explained, "Even before trade tensions, we had already witnessed the reorganization of global supply chains and began diversifying markets away from China, the factory of Asia," adding, "This was not because of trade tensions but because China's competitiveness in certain industries expanded so much that adjustments (of demand destinations, etc.) were necessary."

He emphasized, "New technologies are another aspect that greatly affects us."

He said, "South Korea is particularly well positioned in new technology fields such as artificial intelligence (AI)," and added, "South Korea's AI industry is strong not only in software but also in hardware."

Regarding recent talk of an AI bubble, he predicted, "Even if there is a bubble, the AI boom will continue regardless of who emerges as the winner in this fierce AI competition."

He continued, "AI will generate massive semiconductor demand as it is used not only in high-performance large-scale servers but also in small devices and physical AI," and added, "South Korea is somewhat safer than other countries."

Shin Yong-hyun, Hankyung.com reporter yonghyun@hankyung.com