A professor discusses the cost for one of Korea’s key industries.
Professor Lee Ho-geun an automotive engineering academic at Daedeok University gives his assessment of the possible impact of the Trump tariffs.
Beginning his analysis with the Hyundai Motor Group, he illustrates how they will shortly lose their price competitiveness in the US, because their slim profit margins will make it impossible to continue exporting without increasing prices to the consumer.
But Professor Lee notes that, from his calculations, it is actually GM Korea (GM bought Daewoo back in 2002) which may suffer the most from the tariffs, given the proportion of its exports destined for the American market. At previous times of commercial difficulty, GM has opted to close down overseas production (in Australia in 2013, for instance; in Indonesia and Thailand in 2015).
While they are currently denying rumours of withdrawal from Korea, Professor Lee suggests they may be pressured into withdrawing in 2028 – that is, immediately after current government subsidy arrangements run out.
Original article was written in Korean by Lee Ho-geun and published in 한국아이닷컴 on 11 April 2025. It’s available here.
한국아이닷컴 is a Korean-language daily newspaper in Seoul.
