Government to Hold Industrial Competitiveness Ministers' Meeting on Nov. 27

The government is set to hold the Industrial Competitiveness Ministers' Meeting next week, marking the first such gathering since December 2022. The meeting, scheduled for Nov. 27, will be chaired by Deputy Prime Minister and Minister of Economy and Finance Choi Sang-mok. This meeting, established in June 2016, will bring together key ministers related to industrial policy, including representatives from the Ministry of Trade, Industry and Energy, to review the impact and business conditions of major industries in light of anticipated policies in "Trump 2.0."

The primary focus of the meeting will be to discuss strategies to enhance the global competitiveness of key industries such as semiconductors, secondary batteries, and petrochemicals. This represents a significant shift from the meeting's historical focus on corporate restructuring and mergers and acquisitions (M&A), such as those involving Doosan Heavy Industries, Asiana Airlines, SsangYong Motor, and Daewoo Shipbuilding & Marine Engineering. The last time an agenda other than restructuring was discussed was in March 2020, addressing issues of domestic demand slowdown and supply chain instability due to COVID-19.

DPM Choi emphasized the importance of the meeting, stating, "If the policy direction emphasized by U.S. President-elect Donald Trump becomes a reality, the impact on our economy will be significant." He added, "The industrial sector will be discussed in depth with all related agencies gathered at the meeting."

The decision to hold the meeting comes at a time when the global trade environment is facing significant challenges. The collapse of the World Trade Organization (WTO) system and a decline in global free trade trends have prompted major countries to introduce a surge of industrial policies. The number of such policies worldwide increased from 56 in 2018 to 1,568 in 2022. Experts unanimously agree that industrial policy should be actively pursued to maintain and enhance competitiveness.

Prof. Ahn Dong-hyun of Seoul National University's Department of Economics highlighted the urgency of focusing on industrial policy, stating, "There are only a few sectors left that we can call our main industries." He warned, "Although it is already late, if industries lose more competitiveness, the effectiveness of macro policies could also disappear, so it is necessary to focus on industrial policy."

Choi Min-cheol, associate research fellow at the Korea Institute for Industrial Economics & Trade, echoed this sentiment, emphasizing, "In the era of economic security, the competitiveness of technology and industry has become a matter of survival beyond just living better."

The meeting will also address the challenges faced by the petrochemical sector, which is struggling due to oversupply from China and a decrease in global demand. The government's strategic focus on discussing industrial policy, rather than just corporate restructuring, indicates a shift towards addressing broader economic and industrial challenges.

This will be only the third time the meeting has been held under the Yoon Suk Yeol administration. The previous meeting in December 2022 focused on strategic investment for the normalization of Daewoo Shipbuilding & Marine Engineering. The upcoming meeting is expected to set the stage for future discussions on major industrial policies, including strengthening the competitiveness of electric vehicles and secondary batteries.