Korea Shifts Toward 'China-Free' Supply Chains with U.S. Investments

In an ambitious move, South Korea is actively pursuing economic partnerships with the United States to create 'China-free' supply chains. This strategic pivot responds to the ongoing trade reprisals between Washington and Beijing, presenting both risks and advantages to global markets, Korea included. Reports from the Korea Herald reveal that President Lee Jae Myung's administration has put economic cooperation with the U.S., specifically in the shipbuilding, energy, and critical mineral sectors, at the forefront of its agenda. President Lee and U.S. President Donald Trump were expected to meet at the G7 summit, but attention is now turning to a forthcoming NATO summit for potential discussions.

Strengthening these economic ties has been a priority since President Lee assumed office earlier this month. Both nations are focusing on collaboration in key industries such as shipbuilding, energy, and critical minerals, while also navigating through U.S.-enforced tariffs on Korean exports. As Korean businesses quickly adjust to this shifting economic terrain, SK Group Chairman Chey Tae-won has reportedly engaged with President Lee on strategies for Korean industries to align with the U.S. in fields like AI, semiconductors, and mobility, all aimed at minimizing dependence on Chinese supply chains.

Illustrating a decisive step towards this goal, Korea Zinc has invested USD 85 million to gain a 5 percent share in The Metals Company, a Canada-based deep-sea mining entity focused on electric vehicle and low-carbon energy resources. This investment aligns Korea Zinc with supply chains independent of China, bolstered by the company's recent antimony export to the U.S., which underscores its penetration into the American marketplace. Industry experts predict that as Korea and the U.S. continue to discuss specific cooperative initiatives at high-level gatherings, businesses are poised to act promptly in alignment with national objectives. (ANI)

(With inputs from agencies.)