South Korea political turmoil pushes companies to take tariff matters into their own hands

SEOUL – South Korea’s business leaders are taking action to offset the threat posed by US President Donald Trump’s aggressive trade policies, hiring his former aides and lobbying Republican states out of frustration with delays by their own government, which is mired in a political crisis.

Mr Trump’s sweeping and sometimes indiscriminate trade measures have sparked existential debate in many international capitals over how much they can depend on the US from trade to politics.

While it remains to be seen how the upheaval may affect the longstanding alliance and close economic relationship between Washington and Seoul, the stakes are higher for South Korea than other countries, as it grapples with the worst political crisis in decades after impeached President Yoon Suk Yeol briefly imposed martial law on Dec 3.

Mr Yoon’s policy to grow more closely aligned with Washington amid trade tensions between China and the US has also increased South Korea’s reliance on the US market, which accounted for nearly 20 per cent of its total exports in 2024, leaving its businesses more vulnerable to potential tariff changes.

“We are frustrated,” an executive at a major business conglomerate said, asking not to be identified due to the sensitivity of the subject.

The executive said the government has not discussed any concrete plans to bring Mr Trump to the negotiating table at meetings it held with corporate representatives.

South Korean companies are also worried that they do not have enough backing from the government, when leaders of other countries, including Japan and India, have already met Mr Trump and seek to stave off damaging US tariffs, company officials said.

South Korea’s Acting President Choi Sang-mok has yet to speak directly with Mr Trump, and told lawmakers in February that there are restrictions in the way the acting leadership can