KITA chief vows to keep pushing for US visa reform after meeting exporters from Busan, Ulsan and South Gyeongsang

Korea International Trade Association Chairman Yoon Jin-sik met with export company executives from Busan, Ulsan and South Gyeongsang Province on Wednesday to review on-the-ground challenges including US visa access, freight costs and AI-driven transformation of factory floors. The visit reflected KITA's intent to assess both the export competitiveness and production base of a region that serves as a backbone of South Korea's core manufacturing supply chains in shipbuilding, automobiles and refining.

KITA held the forum at Lotte Hotel in Busan's Seo-myeon district on Wednesday, chaired by Yoon.

The forum was organized to examine the export competitiveness and production foundations of companies in the Busan-Ulsan-South Gyeongsang region, which anchors key manufacturing supply chains in shipbuilding, automobiles and refining. As global supply chain realignment accelerates alongside shifts in the US trade environment, regional manufacturers are simultaneously grappling with visa access, logistics, raw materials and overseas market entry.

The three-region cluster is a critical hub for South Korea's export manufacturing sector. Cumulative exports from Busan, Ulsan and South Gyeongsang Province reached $79 billion in the first half of this year, accounting for 15.9 percent of the country's total. Shipbuilding alone represented 75.7 percent of the region's exports, with automobiles at 40.5 percent, refining at 45.0 percent and non-ferrous metals at 40.3 percent.

In his opening remarks, Yoon said KITA would take the lead in resolving the pressing trade issues facing companies in the region as global supply chain restructuring accelerates — including opening new overseas markets, addressing surging logistics costs and strengthening the manufacturing base.

Ten executives from small but competitive companies in the region's key and emerging industries attended the forum, representing firms including Panasia, Felix Tech, Linno Aluminium, Hwain C&M, Hwain Technology and DK-Lok. The companies spanned a range of sectors: energy equipment, metal forging, electric vehicle components, plant engineering, specialty tape, and fittings and valves.

Company representatives raised a range of on-the-ground concerns directly. Key issues included expanding the quota for US E-2 visas, securing container capacity amid surging ocean freight rates, building pilot infrastructure for eco-friendly ship equipment, expanding dedicated export financing, stabilizing the supply of raw materials such as aluminum, strengthening the effectiveness of price-linkage mechanisms for suppliers, and supporting domestic parts and materials companies in breaking into global markets.

The US E-2 visa issue drew particular attention. Because E-2 visa screening centers on the scale of investment and job creation, the barrier to initial issuance is high for small and medium-sized enterprises that expand their investment incrementally. Firms said they struggle to dispatch the technical personnel needed for on-site project work in a timely manner.

In response, Yoon said he deeply sympathized with the urgency of the problem, noting that while South Korean companies are expanding their US investment — particularly in advanced industries such as semiconductors, batteries and electric vehicles — the visa threshold for dispatching essential personnel remains high. "KITA has been continuously calling for improvements to the visa system through private-sector trade diplomacy channels, targeting the US administration and federal lawmakers in key investment districts," he said, "and we will continue to work closely with the government to produce tangible results."

Structural improvements to manufacturing operations were also discussed. A survey conducted by KITA's Busan regional office between March and June this year, covering 513 companies in the domestic trade sector, found that 63.0 percent of smart-factory adopters in the Busan-Ulsan-South Gyeongsang region remained at a basic level — no more advanced than simple barcode scanning.

A shortage of digital talent at materials, parts and equipment companies was also flagged as a challenge. The survey found that 68.0 percent of such firms had no dedicated in-house software maintenance staff, a structural gap that inevitably slows the progression toward AI-driven transformation — from equipment automation and data-based production management to full AI adoption.

As the export environment shifts rapidly, digital transformation for regional manufacturers is emerging not as an option but as a survival imperative. Low levels of data utilization on the factory floor risk widening gaps in cost reduction, quality control and delivery responsiveness.

Yoon said KITA would actively push for policy recommendations to accelerate manufacturing investment and AI-driven transformation among regional companies, linking the effort to the government's reshoring reestablishment and promotion plan announced in May.

KITA said it will continue to relay the trade grievances and manufacturing competitiveness concerns of companies in the Busan-Ulsan-South Gyeongsang region to the government and relevant agencies, while sustaining support for overseas market development and supply chain resilience.