GJR Aluminium, located in Hwaseong, Gyeonggi Province, has found itself at the forefront of export negotiations amid challenging international trade dynamics. Since the beginning of 2025, GJR Aluminium has been actively pursuing contracts with local U.S. companies, particularly negotiating for a significant $5 million annual contract to export aluminum components used for air conditioners, heat exchangers, and transformers.
Unfortunately, the company, like many others, has encountered substantial hurdles due to the tariffs imposed by the U.S. government under the Trump administration. U-Kerun, the head of GJR Aluminium, made it clear, stating, “We are having difficulties in export negotiations due to the Trump administration's tariff measures.” This sentiment reflects the broader concern within the industry about how these policies are upending export strategies.
On March 12, 2025, the Ministry of SMEs and Startups and the Korea Federation of Small and Medium Business convened for an on-site meeting at GJR Aluminium to gain insights directly from SMEs grappling with these tariff-related issues. Minister of SMEs and Startups Oh Young-joo emphasized the current climate of uncertainty, noting, “The uncertainty in the external environment felt by the mid-term export is higher than ever due to the realization of the Trump 2nd administration's tariff policy.” He assured attendees of his ministry's commitment to providing comprehensive support to alleviate these pressures on SMEs.
To this aim, the Ministry of SMEs and Startups unveiled plans to establish an emergency response team focused on swiftly addressing the needs of companies affected by trade tariffs. This task force will work to devise countermeasures to support firms facing these challenges and stabilize their operations. Jeong Han-sung, CEO of Shin Jin-hwasner Industrial, highlighted the vulnerability of the domestic industry, particularly emphasizing the shortage of alternative raw material supply chains for smaller businesses. Jeong stated, “It is difficult for the domestic paster industry to secure alternative raw material supply chains except for large domestic companies.”
The Ministry and the Korea Federation of SMEs also announced their intent to conduct surveys this month targeting small and medium-sized steel and aluminum companies exporting to the United States. This initiative aims to carefully assess the unique challenges facing these businesses and gather valuable data to inform potential policy recommendations and support mechanisms moving forward.
Kim Ki-moon, Chairman of the Korea Federation of Small and Medium Business, stressed the importance of collaboration between the government and the private sector, calling for urgent measures to mitigate mid-term damages resulting from the volatile trade environment. He declared, “It is urgent for the government and the private sector to cooperate to minimize mid-term damage in the rapidly changing trade environment.”
Further, he stated the Federation's commitment to facilitating the advancement of Korean businesses in overseas markets, with plans to host the World Korean Business Conference next month. This conference is expected to serve as a platform for SMEs to explore international business opportunities and strategies to adapt to current trade challenges.
The dialogue between GJR Aluminium and government bodies highlights the urgent need for coordinated efforts to navigate the complex interplay of tariffs and trade agreements. With GJR Aluminium’s ambitions to enter the U.S. market hanging precariously due to these external factors, the future of many local SMEs could very well depend on the effectiveness of these initiatives and policies.