Welcome to the AKBC Business Connect - July Edition

Opportunity

Dear Subscriber,

Yesterday marked a pivotal shift in the geopolitical and trade landscape, with the announcement of a landmark South Korea–U.S. trade deal. Under the agreement, the U.S. will reduce tariffs on Korean goods from 25% to 15% in exchange for US$350 billion in Korean investment across shipbuilding, semiconductors, clean energy, biotechnology, and more.

This deal—secured just weeks after President Lee Jae-myung took office—provides a temporary reprieve from mounting trade tensions and signals a more assertive and outward-facing Korean investment strategy. It also reaffirms Korea’s deep dependence on exports, which accounted for 44% of its GDP in 2024—more than double the rate of Japan.

While the U.S. has successfully secured Korean investment, it also highlights a window of opportunity for Australia. As Korea looks to diversify and hedge against geopolitical uncertainty, Australia must sharpen its value proposition as a strategic, stable, and competitive partner. Australia’s strengths are clear:

• We have world-class resources and renewable energy capacity, including critical minerals and hydrogen;
• We have a resilient and transparent regulatory environment;
• We are a trusted defence partner, especially as Korean firms such as Hanwha deepen their presence in Australia;
• We have a high-performing FTA (KAFTA).

At AKBC, we believe this is a defining moment for our bilateral relationship. Korea is seeking global partners, and Australia has what it takes to be front of mind. These themes will be central to discussions at the 46th KABC–AKBC Joint Meeting in Seoul this September, where senior business and government leaders will come together to chart the next phase of Australia–Korea economic engagement. We look forward to seeing many of you there and continuing to shape this dynamic and evolving relationship.

Warm regards,

Liz Griffin

Chief Executive Officer

Australia–Korea Business Council

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