---

---

Okay, here's the English translation of the provided text, maintaining the original formatting:

Trump is currently campaigning for the 2024 presidential election, and his economic policy direction is attracting significant attention. The core of his policies emphasizes "completing the advanced industry value chain within the U.S. and strengthening American-first principles." However, the potential impacts of these policies on the global economy and their implications for the South Korean economy are complex, sparking the following debates.

---

Key Features of Trump's Policies

1. Completion of the Advanced Industry Value Chain within the U.S.

The key is to establish the entire value chain for promising future high-tech industries (such as semiconductors, AI, and batteries) within the U.S.

• Integrating the existing globally dispersed value chain (design in the U.S., materials in Japan, manufacturing in Taiwan, etc.) into the U.S.
• Expanding high-tech industrial plants and attracting domestic investment in the U.S. to achieve this.

2. Establishment of Efficiency-Focused Government Agencies

Potentially creating agencies within the government to enhance efficiency, inspired by ideas from figures like Elon Musk.

• Efficient reallocation of budget and accounting.
• Abolishing outdated regulations and establishing a regulatory framework suitable for future industries.

3. Corporate Tax Cuts

Expected reductions in corporate taxes to provide an attractive environment for businesses.

• Encouraging global companies to relocate their headquarters or establish factories in the U.S.

4. Tariff Increases

Likely imposition of high tariffs on major import countries, including China.

• Increasing prices of imported products and promoting domestic production in the U.S.
• However, there are concerns that these measures could lead to long-term inflationary pressures.

---

Impact on the Global Economy

1. Potential for Intensified Trade Wars

If the U.S. increases tariffs, there is a possibility of reciprocal tariff retaliation between countries.

• Resulting in a decrease in global trade volume.
• Concerns about negative economic effects on countries highly dependent on trade (including South Korea).

2. Entrenchment of Resulting Low Growth

While Trump's economic policies may have short-term positive effects on the U.S. economy, they could entrench long-term global low growth.

• Undermining global cooperation and promoting economic division.

3. End of the Russia-Ukraine War

Potential strategies to end the war with Russia and isolate China through it.

• This would bring significant changes to the international geopolitical landscape.

---

Implications for the South Korean Economy

1. Need for Korean Companies' Response Strategies

Trump's policies are likely to significantly impact South Korean companies due to changes in the global supply chain.

• The need to adjust manufacturing and component supply chains.
• Considering entry into and increased investment in the U.S., particularly in high-tech industries (especially semiconductors).

2. Impact of FTA and Tariff Policies

Potential reevaluation or abolishment of existing FTA agreements due to Trump’s isolationist policies.

• The need to closely monitor the impact on existing trade relationships, such as the KORUS FTA.

3. Preparing for a Low-Growth Scenario

Given South Korea's highly trade-dependent economic structure, it is sensitive to decreases in global trade volume and global growth slowdown.

• The need for domestic consumer economy and structural reorganization centered on high-tech industries.

---

Core Recommendations

South Korea must proactively prepare for these changes in the global economic and political environment. Beyond short-term diplomatic responses, it must prepare long-term strategies for diversifying its domestic industry and trade structure.

---

< Summary in English >

Trump's Economic Policies and Impacts on Korea

1. Key Policies:

   • Domestic completion of value chains for high-tech sectors (e.g., semiconductor, AI, and battery).
   • Deregulation and enhanced government efficiency.
   • Reduced corporate taxes to attract global companies.
   • Potential tariff increases targeting major exporting countries like China.

2. Global Impact:

   • Trade war escalation leading to reduced global trade.
   • Inducing prolonged global stagnation.
   • Ending the Russian-Ukraine war to redirect focus on isolating China.

3. Implications for Korea:

• Korean industries need to adapt to the changing global supply chain.

• Watchful of potential FTA renegotiations or cancellations.

• Prepare for scenarios of global stagnation by diversifying industries and trade partnerships.

• Recommendation: South Korea must preemptively prepare for global economic shifts by strengthening domestic and export strategies.

---

• Crafted by Billy Yang

---

[Related Articles at Next-Korea.com]

1. Future Industries and South Korea's Response Strategies
2. Global Supply Chain Changes and Opportunities for the Korean Economy

*YouTube Source: [경제 읽어주는 남자(김광석TV)]

– [모아보기] ‘트럼프 2.0 MAGA’ 전략 총정리: 트럼프가 다시 그리는 세계경제 시나리오