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

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  • Won Bok Lee

    (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.

Suggested Citation

  • Won Bok Lee, 2025. "Assessing Korea’s Value-Added Exports to the US and Strategic Policy Responses," Industrial Economic Review 022204, Korea Institute for Industrial Economics and Trade.
    • Handle: RePEc:ris:kieter:022204
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