South Korean Trade Minister Discusses Global Supply Chain at APEC CEO Summit

South Korea's Trade Minister, Cheong In-kyo, attended the Asia-Pacific Economic Cooperation (APEC) CEO Summit in Peru, where he engaged in discussions with global business leaders on the state of the global supply chain. His office reported that Cheong's participation focused on gaining insights from Peru as South Korea prepares to host the APEC summit in 2025, which will take place in Gyeongju, located 275 kilometers southeast of Seoul.

During his visit, Cheong also took part in an event hosted by the U.S. National Center for APEC, where he met with U.S. business leaders, including Antony Cook, the corporate vice president of Microsoft. The two discussed strengthening bilateral economic relations between South Korea and the United States, with a particular emphasis on supply chains in critical industries such as artificial intelligence chips.

Additionally, the South Korean trade minister held separate bilateral meetings with counterparts from Thailand, Indonesia, Singapore, New Zealand, and Australia. These talks explored potential strategies for addressing future shifts in global trade under the incoming U.S. administration.

Meanwhile, South Korea's customs agency reported a decline in container shipping costs to China for the first time in nine months. The average cost of shipping a 40-foot container from South Korea to China fell by 6.9% in October, dropping to 767,000 won ($545.36). This marked the first month-on-month decline since January, reversing an upward trend that had lasted for eight months.

Shipping costs to other major trade partners, including the United States, the European Union, Japan, and Vietnam, also fell in October compared to September. However, when compared to the same time last year, shipping costs for these major routes have increased due to rising shipment volumes and a shortage of available vessels.

The year-on-year rise in shipping costs has been further compounded by disruptions in the Middle East maritime route. Strikes on ships in the Red Sea by Iranian-backed Houthi rebels have forced carriers to suspend transit through this crucial shipping corridor, leading to delays and increased costs.