According to Yonhap News,

South Korea will reopen its strategic review on joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a multilateral trade pact led by Japan, as part of efforts to increase its economic allies amid the global rise of trade protectionism, the industry ministry said Wednesday.

"The government will renew its consideration of joining the CPTPP to establish an economic alliance network with like-minded countries," the Ministry of Trade, Industry and Energy said.

The plan was announced as part of the government's comprehensive strategy aimed at minimizing the impact of U.S. Donald Trump administration's sweeping tariff scheme.

The CPTPP is a major Indo-Pacific trade agreement comprising 12 countries, including Japan, Mexico, Australia, Canada and Vietnam, that together accounted for about 15.2 percent of global trade in 2019.

In 2022, the South Korean government decided to push for the country's entry to the CPTPP, but the country failed to submit a formal application for membership due to opposition from the agriculture and fisheries sectors, and a strained relationship with Japan.

"Since then, the situation has changed a lot ... so we are trying to restructure our logic (for joining the CPTPP) and consult with member nations (of the CPTPP)," an industry ministry official said on the condition of anonymity.

On Tuesday, Trade Minister Yeo Han-koo said during a Cabinet meeting that the government needs to recommence strategic consideration into the CPTPP, noting that Korea should diversify its export destinations amid trade conflicts between Washington and Beijing.

Earlier in the day, the ministry unveiled its plan to provide up to 570 billion won (US$408.8 million) in emergency financial aid this year to help South Korean companies cushion the blow from the 50 percent U.S. tariff on all steel and aluminum imports.

The 570 billion-won financing support will include a special low-interest rate loan program for companies in the steel and aluminum sectors and cover expenses to lower interest rates on loans previously extended to small and medium-sized enterprises (SMEs) in those sectors, according to the ministry.

The government also decided to expand the volume of trade insurance to be provided this year to 270 trillion won, up from the initially planned 256 trillion won.

In addition, it will take steps to expand companies' access to the 13.6 trillion-won fund created earlier this year to provide emergency liquidity to firms in tariff-hit industries, the ministry said.

The ministry added the government will also work to boost domestic demand for the country's key export items, such as automobiles, home appliances and steel, to offset the decrease in overseas demand caused by U.S. tariff measures.

Such measures are expected to include a subsidy program for electric vehicles (EVs) and high-efficiency home appliances, as well as the creation of a 100 trillion-won fund to promote investment in South Korea, primarily in the country's strategic industries.

The government also plans to strengthen responses to unfair trade practices, such as circumvention of tariffs and dumping, while making efforts to diversify Seoul's export items and destinations.

In addition, the government plans to announce a set of measures later this year to enhance the fundamental competitiveness of the future mobility, steel and secondary battery industries, according to the ministry.

In late July, Seoul and Washington reached a crucial agreement in which the United States imposes a 15 percent tariff on South Korea, down from the initially planned 25 percent, in exchange for an investment pledge of US$350 billion in the U.S.

Under the deal, the U.S. also agreed to lower tariffs on Korean cars to 15 percent from 25 percent.


nyway@yna.co.kr

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Source: Yonhap News (September 3, 2025)