Minister Kim Jeong-gwan of the Ministry of Trade, Industry and Energy: "Direct Response to US Tariffs... The Ministry Must Take the Lead"

Kim Jeong-gwan, the newly appointed Minister of Trade, Industry and Energy, on the 21st urged all staff to do their utmost as pioneers to maximize national interest and resolve corporate uncertainties.

At his inauguration ceremony held that afternoon at Government Complex Sejong, Minister Kim said, "The order of free trade no longer works properly due to the expansion of US tariff measures and protectionism," and made these remarks. He stated, "Let's become a capable Ministry that thoroughly manages and resolves the difficulties of exporting and investing companies," adding, "We need to work as one with relevant ministries, related organizations, and the industry so that trade structure innovation and the era of $1 trillion in exports become a confident reality, not just a slogan."

Minister Kim further emphasized, "The core of industrial policy in my mind is to realize 'real growth'." To this end, he stressed that policy will be promoted implementing three principles—speed and communication, selection and concentration, and practice and realization—under three directions: maintaining sustainable growth momentum, balanced industrial development, and maximizing strategic national interests.

He said, "Our speed is not important; if our competitors' speed is faster than ours, we can't help but fall behind," adding, "If we run alone, the gap between the industry and companies will only widen, so speed and communication are necessary."

Given the rapidly changing global competition system driven by revolutions in artificial intelligence (AI) and energy, he called for redesigning support such as R&D so that Korean businesses can develop capabilities to take the lead. Conditions should be created to boldly challenge next-generation technologies—such as AI semiconductors and humanoids—without fear of failure.

For structurally oversupplied industries like petrochemicals and steel, he advised preparing for a leap forward without missing opportunities through proactive business restructuring and transition to high value-added products.

He also mentioned the need to secure energy security centered on eco-friendly energy and realize carbon neutrality. He suggested fostering metropolitan industries based on the "5 Poles 3 Special Zones" framework, creating RE100 industrial complexes, and driving regional investment by companies through bold regulatory innovation and incentives.

Minister Kim, coming from the Ministry of Economy and Finance and previously with Doosan Enerbility, noted, "Businesspeople are lonely and desperate amid fierce competition," urging, "Let's sincerely listen to their voices and find practical solutions together, even if small."

He also delivered a strong message regarding organizational innovation, stating, "Reports made for reporting's sake, dressing up reports, or reprinting over a single typo are 'fake work' that does nothing for the nation or industry. Let's do real work where even small changes and progress occur."

Minister Kim is expected to focus on trade issues for the time being. Before the inauguration ceremony, at the Seoul Chamber of Commerce and Industry's 'Emergency Review on US Trade Issues' meeting, he mentioned, "Issues such as further opening of the agricultural market and the resumption of beef imports over 30 months old, as demanded by the US, are on the negotiation table."

Concerning tariff negotiations, he said, "I am deeply mindful of the great concerns raised domestically," and, "While reflecting sensitivities to the utmost, I will do my best to achieve optimal results from the overall national interest perspective." He added, "I am keenly aware of the uncertainties facing the industry," and, "In addition to existing support measures, we will also gather industry feedback to devise effective domestic policies."

When visiting the press room of the Ministry of Trade, Industry and Energy in Sejong, Minister Kim stated that the timing of his visit to the United States is "still under coordination" and "the schedule will likely be finalized by tomorrow." Regarding the claim from some that the Shipbuilding and Offshore Plant Division should be transferred to the Ministry of Oceans and Fisheries, he responded, "The National Planning Commission will decide, but shipbuilding is characterized more as a complex industry involving materials, parts, and equipment than as a marine industry." He explained that South Korea should learn from Japan, where shipbuilding lost competitiveness when a maritime ministry took charge. On whether there are issues with integrating the energy sector of the Ministry of Trade, Industry and Energy into a new Ministry of Climate and Energy under the Ministry of Environment, he withheld comment.

Reporters Kim Dae-hoon / Ha Ji-eun daepun@hankyung.com