The Global Race for Industrial Policy: Korea’s Strategic Pathway to Economic Security

This paper investigates the global race in industrial policy and its intersection with national economic security strategies, examining how the Republic of Korea (ROK) can establish its strategic direction to mitigate risks from policy competition while maximizing its national interests.

Driven by isolationist motives, a new trend in industrial policy has emerged, leading to the fragmentation of global value chains and, even worse, toward “deglobalization.” This trend threatens not only the international free trade system but also potentially undermines the ROK’s economic security interests. To address these challenges, we draw upon empirical and model evidence to propose strategic positioning for the ROK through industrial policies.