Samyang Foods products displayed at a large supermarket in Seoul. The popular Buldak Bokkeum Myeon, which has gained particular popularity among foreigners, is visible. (Yonhap)
SEOUL, April 10 (Korea Bizwire) — South Korean exporters are bracing for economic turbulence as the United States imposes sweeping reciprocal tariffs, effective April 9. The new trade measures levy a 25% tariff on South Korean exports—casting a shadow over high-performing sectors like K-food, K-beauty, and fashion that have found strong demand in the U.S. market.
The impact is already reverberating across industries. Samyang Foods, maker of the global hit Buldak ramen, and Daesang, Korea’s top kimchi exporter, are expected to be hit particularly hard, as both rely heavily on domestic manufacturing for U.S. exports.
Samyang, which generated over 1 trillion won in overseas sales in 2024, said 28% came from the Americas. The company has launched a dedicated tariff response task force to explore options such as reducing margins, diversifying export markets, and monitoring global competitors.
Daesang, despite maintaining some U.S. production capacity, still exports significant volumes of kimchi from Korea. Both companies have urged government support, citing the limits of what individual firms can do in the face of structural trade shifts.
The Ministry of Agriculture, Food and Rural Affairs (MAFRA) has pledged to expand export vouchers, trade financing, and marketing support, including joint promotions, trade show participation, and placement in U.S. online platforms.
This file photo shows the kimchi section of a retail outlet in Seoul. (Yonhap)
SMEs and Manufacturers: Ill-Prepared and Vulnerable
Small and mid-sized enterprises (SMEs) across Korea are expressing frustration, many of them caught off guard despite long-standing warnings of potential U.S. tariff action. With limited capital and personnel, many are struggling to fulfill orders signed earlier this year.
A manufacturer in North Gyeongsang Province said he now plans to reduce exposure to the U.S. market and seek alternative export destinations. The broader fear is that if Korean conglomerates shift production abroad to avoid tariffs, domestic SMEs tied to their supply chains will suffer collateral damage.
Indeed, earlier tariffs on steel, aluminum, and auto parts have already left a mark. A survey by the Korea Federation of SMEs found that 42.8% of 600 firms in those sectors reported a decline in exports or revenue due to U.S. trade measures.
The Ministry of SMEs and Startups is now allocating 29 billion won in export vouchers and has opened a tariff support center for real-time response.
A clothing store on a street in Myeong-dong, Jung-gu, Seoul. (Yonhap)
Fashion and K-Beauty Rethink Supply Chains
In fashion, the impact is particularly severe for Korean OEM firms manufacturing in Vietnam (46% tariff) and Bangladesh (37%). Brands may push for cost cuts, while producers face supply gluts and slowing demand.
Major exporters like Hansae and Youngone are looking to shift operations to lower-tariff regions like El Salvador and Guatemala or expand U.S.-based production.
Meanwhile, K-beauty, which has thrived in the U.S. under the Korea–U.S. Free Trade Agreement (FTA), now faces tariff exposure for the first time. Industry watchers say the impact may be muted due to the category’s reputation for affordability and the fact that many global competitors also face tariffs.
However, companies with U.S.-based factories are positioned to benefit. KOLMAR Korea already operates a facility in Pennsylvania and is set to complete a second by mid-2025. COSMAX runs a plant in New Jersey.
“We will actively respond to market shifts by leveraging our U.S. manufacturing capabilities to mitigate the impact of tariffs,” said a KOLMAR official.
As Korean companies regroup, the government is expected to continue pressing for diplomatic solutions while bolstering industry-level countermeasures. The unfolding scenario underscores the vulnerability of global supply chains to geopolitical friction—and the importance of diversification and localization in export strategies going forward.
Ashley Song (ashley@koreabizwire.com)
