U.S-Korea trade transcends Trump's presidency
In an unexpected turn of events, US immigration officials detained approximately 300 Korean workers at a multibillion-dollar electric vehicle battery factory in Georgia on September 4, 2023. After eight days in detention, all but one of the Korean workers had returned home.
This incident has caused a strain in relations between South Korea and the US, a relationship that has been largely cooperative and amicable since World War II. The detention of Korean workers has raised concerns in Seoul and Busan, as images of South Koreans in handcuffs and shackles do not play well in these cities.
Robert J. Fouser, a former associate professor of Korean language education at Seoul National University, currently writing on Korea from Providence, Rhode Island, expressed his views on the matter. He emphasised the importance for South Korea to focus on its national interest while keeping the long view in mind. Raids like the one in Georgia, he noted, are a deterrent to foreign investment, a sentiment echoed by The Wall Street Journal.
The US, despite its economic might, has been facing social issues, particularly in comparison with other advanced countries. In 2023 and 2024, the US accounted for about one-third of the world's total Household Final Consumption Expenditure (HFCE), with a staggering $19.8 trillion. However, only 12 percent of the US GDP came from exports. South Korea, on the other hand, had a trade-to-GDP ratio of 88 percent, with exports accounting for 44 percent of its GDP in 2023.
The detention of Korean workers has highlighted the complexities in the economic relationship between South Korea and the US. The US GDP as a percentage of the world's is stable and suggests that the US will remain a critically important export market for South Korea for the rest of the 21st century.
As the dust settles from this incident, both countries will need to navigate these complexities to maintain their strong economic ties. Robert J. Fouser can be reached at [email protected] for further discussions on this matter.
Read also:
- Aquatech purchases Koch's Direct Lithium Extraction business, merging Li-ProTM DLE technology into the PEARLTM Technology Platform.
- Li Auto faces scrutiny after crash test involving i8 model and a truck manufacturer sparks controversy
- Emerging Investment Trends in China's Ethical Finance Sector for 2025
- Construction and renovation projects in Cham county granted €24.8 million focus on energy efficiency
