Business · Trade · 8 hrs ago
Economists warn cutting US trade with South Korea could cause major damage
Two economists have warned that ending US trade with South Korea could seriously hurt the US economy.
They are Lee Kye-moo, a vice president at the Federal Reserve Bank of Dallas, and Jang Yong-sung, a member of the Bank of Korea’s Monetary Policy Board.
Their paper argues that trade and supply-chain cooperation with South Korea strengthens US economic security.
The warning comes as the US raises trade barriers in the name of economic security.
The economists point to semiconductors, shipbuilding and batteries as industries where cooperation matters.
They say a trade break could cause more damage than a typical recession.
The paper was published in a Korean economics journal, and the article describes no further steps.
Two central-bank economists warned that ending US trade with South Korea could hurt the US economy more than a typical recession.
They argued that stronger supply-chain cooperation with South Korea is essential to US economic security and resilience.
The economists criticized US protectionism as the country raises tariff barriers in the name of economic security.
Their paper highlights cooperation in semiconductors, shipbuilding and batteries.
- Who
- Lee Gye-mu, a vice president at the Federal Reserve Bank of Dallas, and Chang Yong-sung, a Bank of Korea Monetary Policy Board member.
- What
- They warned that cutting trade with South Korea could cause major damage to the US economy.
- When
- The paper appeared in a Korean economics journal on the 31st; the source does not specify the month.
- Where
- The paper was published in the Korean Economic Forum.
- Why
- They said trade and supply-chain cooperation with South Korea is important for US economic security and resilience.
This story does not have two clearly opposing sides.
An earlier version of the paper was published by the Hoover Institution’s online publication Freedom Frequency.
The paper was published in the Korean Economic Forum; the source does not specify the month.
The Korean Economic Association reported the paper’s findings.
- Authors
- Lee Gye-mu and Chang Yong-sung
- Journal
- Korean Economic Forum
- Publication date
- 31st; month not stated
- Industries cited
- Semiconductors, shipbuilding and batteries
- Earlier publication
- Freedom Frequency, in July
What people are saying
If trade with South Korea is cut off, the damage to the US economy could be greater than that of a typical recession.