South Korea, US, EU and partners agree joint response to industrial overcapacity

South Korea, the United States, Japan and other partners have agreed to cooperate on structural industrial overcapacity, South Korean outlets reported on October 8. Newsis identified the signatories as 14 countries and the European Union. Newsis and Asia Economy, citing South Korea's trade ministry, said the joint ministerial statement was announced on October 7 at OECD headquarters in Paris. [ 2 , 3 , 4 ]

The initiative covers five sectors: automobiles including electric vehicles, batteries, chemicals, foundational semiconductors and solar panels. Participants plan to establish dedicated groups to examine whether structural excess capacity and production exist in each sector, assess their effects on markets and industries, and explore responses. Working-level meetings are planned before December to discuss operations and share releasable information and data about overcapacity, its effects and mitigation efforts. [ 3 , 4 ]

The statement calls on countries to address nonmarket policies and practices that distort markets and sustain structural overcapacity. Newsis reported that participants warned of harm to domestic industry, local production, employment, economies and living standards without timely action. The statement does not name China, although Seoul Economic Daily, Newsis and Dong-A Ilbo interpreted it as directed at Chinese overcapacity. [ 1 , 2 , 5 ]

The initiative followed discussions at the G20 trade ministers' meeting in Milwaukee from September 30 to October 1. Newsis and Asia Economy reported that differences among members prevented a G20-wide agreement, prompting participants who shared the concerns to issue a separate statement. Senior officials also met alongside the OECD Trade Committee on October 7 to begin discussing cooperation. The sector groups will be open to OECD members and nonmembers, the outlets reported. [ 3 , 4 ]