The global tariff war caused by the Trump risk is increasing uncertainty about the future.


In reality, in addition to the 25% tariff on finished cars, a 10% tariff is also being imposed on auto parts, resulting in serious losses.

From our perspective, where the automobile industry serves as the backbone of the national economy, the crisis is accelerating and a clear solution is needed.

Accordingly, the need for a so-called 'big deal' to be reached at the Korea-U.S. summit expected in July is growing.

In particular, in the case of GM Korea, which is known to export about 84% of its total production to the United States, voices calling for withdrawal are growing louder.

It is true that the recent announcement by GM Korea that it will sell off its nine nationwide direct service centers and the idle facilities and land of its Bupyeong plant has greatly fanned the flames of these withdrawal rumors.

The fact that GM headquarters recently announced that it would invest over 5 trillion won in facilities in the U.S. to increase production is also adding strength to the withdrawal theory.

However, I hope you refrain from excessive interpretation.

GM Korea also faced difficulties in 2018.The fact that the company has invested a significant amount of money in modernizing its domestic production facilities and has improved the domestic working environment significantly is also a factor that makes it impossible for the company to leave the domestic market.

Moreover, given that there is a possibility that the tariff issue could be resolved through a big deal at the Korea-US summit in July, the logic of withdrawing without holding out for a month or so is even more unrealistic.

GM Korea plays a key role in the economy of the Incheon and Changwon regions where its main production facilities are located.

With more than 250,000 workers working directly or indirectly with GM, including its partners, continuing to talk about a withdrawal could cause confusion across the nation's key industries and the regional economy.

Rather, the business adjustment including the sale of GM Korea's directly operated service centers mentioned above can be seen as a desperate measure to ensure stable business operations in Korea.

In fact, various global automakers have also flexibly adjusted their production bases and sales networks according to the situation in the past.

Examples include Toyota, which has been operating flexibly by temporarily halting some of its production lines in Japan in response to the semiconductor shortage; Stellantis, which has halted operations at its aging engine plant in Poland due to the EU's strengthened regulations on internal combustion engine emissions; and Ford, which has cut more than 50 dealerships as part of a restructuring plan to halve the size of its dealer network in the UK by the end of this year to maximize profitability at each store.

Such cases can be interpreted as decisions to increase business efficiency and viability in key locations, and to mitigate uncertainty in global markets.

GM Korea's decision this time should be understood in this context.

There will be no changes to the domestic production program and the employment of employees working at direct service centers will be Given the inclusion of a condition that it would be guaranteed, this decision can be interpreted not as a withdrawal, but rather as a self-rescue measure to tighten one's belt in order to remain in Korea.

In situations like this, the government's role becomes even more important.

The significance of President Trump's global tariff policy lies in the fact that the White House is asking governments, not corporations, to fill the empty coffers.

As financial support from the government and local governments for tariff items through exports to the U.S. is most important, the newly launched government must understand the context of the policies being implemented by the Trump administration and actively implement fiscal management through a large-scale supplementary budget and various incentive policies.

At the same time, a solution must be found through a big deal in the upcoming tariff negotiations.

Unlike other fields, the automobile ecosystem cannot be recovered once it collapses, so the government's role in maintaining the ecosystem is even more important to prevent problems such as corporate bankruptcy.

At the same time, we must also take steps to stabilize the currently tense labor-management relations.

Of course, it is most important for GM Korea to make active efforts to gain trust at the company level so as to prevent further fueling of withdrawal rumors, but I hope that everyone will work together to overcome the current crisis through policy support from the government and local governments, and a stable labor-management environment, to produce wise results.