South Korean exporters, surveyed by the Korea International Trade Association (KITA), expressed worries about the impact of foreign exchange (FX) market fluctuations and U.S. tariff strategies on their businesses. Among the 1,193 companies surveyed, a significant percentage anticipated challenges in the upcoming year, with concerns about FX volatility and U.S. tariffs being the most prominent at 43.5% and 40.1%, respectively.
Over 47% of the surveyed companies have set higher sales targets for 2026 compared to the previous year, with more than 80% planning to maintain or increase investments in both domestic and international markets. These firms highlighted facing increased import costs for raw materials and pressure to reduce prices from foreign buyers due to the weakened Korean won.
Furthermore, South Korean companies noted the growing competitiveness of Chinese counterparts, with concerns rising over Chinese firms’ market dominance. The survey revealed that Chinese companies were viewed as more competitive in sectors like petroleum products, home appliances, and steel, while South Korean businesses maintained an edge in industries such as semiconductors and medical equipment.
The survey also indicated that nearly half of the Korean companies surveyed urged the government to focus on stabilizing the local currency to support export activities. Additionally, around 28% emphasized the importance of negotiating with major economies to mitigate trade risks and create a conducive business environment.
