More than half of South Korean startups are also concerned that the Platform Competition Promotion Act (PCPA), pushed forward by the Fair Trade Commission, could adversely affect the startup ecosystem. (Image courtesy of Pixabay)
SEOUL, Dec. 24 (Korea Bizwire) — A recent survey revealed that over half of Korean startups anticipate adverse effects on their businesses from the policies of Donald Trump’s second presidential term.
The findings highlight concerns over protectionism, supply chain nationalism, and currency fluctuations.
According to a poll conducted by the Korea Venture Business Association (KOVA) of 400 startups between December 4 and 11, 52.3% of respondents said the Trump administration’s policy shifts would negatively impact their business environment.
Only 10.6% foresaw positive outcomes, while 37.3% deemed the effects neutral.
Key concerns include stricter trade policies, exchange rate volatility, and a U.S.-centric supply chain. Approximately 65.2% of respondents viewed changes in trade and commerce policies as harmful, while 62.2% expressed similar concerns about currency fluctuations.
For instance, a semiconductor vendor exporting to the U.S. warned that universal tariffs could erode product competitiveness, potentially reducing sales. Another electronics component maker cited rising raw material costs due to currency fluctuations as a threat to profitability.
However, some startups see opportunities in the Trump administration’s focus on fostering advanced industries like AI and biotech. A healthcare software firm stated it is leveraging improved U.S. business conditions to build partnerships and explore new markets.
To adapt, startups highlighted strategies such as enhancing product competitiveness, exploring new markets, and closely monitoring policy changes.
The most-needed government support measures include financial and currency risk management (51.5%), export assistance (49.0%), deregulation (31.3%), and updates on U.S. policy changes (22.0%).
KOVA Chairman Sung Sang-yeop emphasized the urgency of addressing emerging challenges, including financial instability and weakening competitiveness in key industries.
“It is crucial to empower venture businesses to once again serve as a driving force for the Korean economy,” he urged, calling for robust government support and proactive policies.
Ashley Song (ashley@koreabizwire.com)
