Assessing Korea’s Value-Added Exports to the US and Strategic Policy Responses

Won Bok Lee
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Won Bok Lee: Korea Institute for Industrial Economics and Trade

Industrial Economic Review from Korea Institute for Industrial Economics and Trade

Abstract: This study utilizes the Asian Development Bank (ADB) Multi-Regional Input-Output Database (MRIO) to analyze export flows of cross-border intermediate goods and indirectly estimate value-added exports. The findings of the analysis show that South Korea’s value-added exports to the United States are directly exposed to the impacts of the second Trump administration’s tariff policies. This vulnerability arises because the top transit countries for US-bound value-added exports overlap with the countries with which America’s trade deficits are the largest, making them particularly sensitive to US policy changes. Accordingly, Korea should pursue a flexible response to US efforts to restructure global supply chains around its interests, enhance risk mitigation, and diversify key production and processing hubs.

Keywords: value-added; exports; tariffs; global value chains; GVCs; protectionism; global trade; South Korea; United States (search for similar items in EconPapers)
Pages: 9
Date: 2025
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Published in KIET Industrial Economic Review Vol. 30, No. 6

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