South Korea is expected to be one of the countries most affected by the protracted trade war between the United States and China, though the impact is forecast to remain limited, a report said Sunday.
According to the report from the Korea International Trade Association, the country's gross domestic product is forecast to drop 0.018 percent, worth some $236.49 million, over a year if the US and China each impose 25 percent tariffs on the other's $50 billion worth of goods. China and the US are South Korea's top two trading partners.
The estimated damage for Korea is the second highest following that for Taiwan, whose comparable figure is expected to stand at 0.025 percent. Canada came in third with 0.016 percent, followed by Mexico with 0.014 percent and Ireland with 0.012 percent, the report said.
|American and Chinese national flags fly outside a business complex in Beijing on August 11, 2018. (UPI-Yonhap)|
The figures are based on the assumption that the GDP of the US and China will drop 0.1 percent and 0.2 percent each following the dispute.
The degree of influence experienced by countries will differ as they have different levels of dependence on the world's two largest economies, it said.
"South Korea needs to reduce its reliance on China and the US in the long-term and expand its trade partnerships with other regions, such as India and the Association of Southeast Asian Nations members," said Kang Nae-young, a researcher at the trade association.
The trade ministry said last month it will closely monitor the trade dispute's impact on its exports and expand support for companies trying to enter alternative markets if needed. (Yonhap)