South Korea to Tap Summit Diplomacy Network to Cushion Trade Risks

South Korea's finance ministry said Monday it will draw on the country's expanding web of economic partnerships, many of them sealed through presidential summit diplomacy, to shield the economy from a fraying global trade environment, including renewed tensions in the Middle East.

Finance Minister Koo Yun-cheol, who also serves as deputy prime minister for economic affairs, made the announcement while chairing a meeting of relevant ministries on external economic policy. He said the government would move quickly to put memorandums of understanding signed during past summits into action, calling this the fastest way to convert diplomatic goodwill into concrete trade and investment gains for Korean firms.

"The government will focus on ensuring the stable management of external risks while continuing efforts to build cooperation with new markets," Koo said, adding that ministries would proactively support Korean companies looking to expand their overseas footprint.

The meeting also addressed a fresh trade irritant with Washington. The Office of the US Trade Representative recently floated a 12.5 percent tariff on South Korea and dozens of other economies over allegations that they have failed to properly enforce bans on imports made with forced labor. The finance ministry said it intends to keep talking with US counterparts to manage the relationship steadily, while continuing to review the viability of projects tied to Seoul's broader investment commitments to Washington.

Officials also reviewed progress on a Comprehensive Economic Partnership Agreement under negotiation with Bangladesh, aimed at deepening cooperation in infrastructure, manufacturing and energy, part of Seoul's push to diversify trade ties beyond its traditional partners.

A separate strand of discussion centered on official development assistance tied to artificial intelligence. Under a vision the government calls a "Global AI Basic Society," the ministry said it wants to export Korean AI business models to developing nations, pairing the technology with data centers and energy infrastructure while targeting sectors such as water management, health care, transportation and education. Officials noted the initiative doubles as a channel for Korean companies to gain footholds in overseas markets even as they hunt for new growth engines amid record export performance shadowed by mounting external risks.