According to Cho Choongjae, Senior Director General of the Korea Institute for International Economic Policy (KIEP), the South Korean economy faces such challenges as protectionism and unilateralism. The country is highly dependent on trade with both China and the United States, which cover about 38% of total South Korean exports. The strategy of the South Korean government is to diversify trading partners. Seoul tries to expand cooperation with North Korea, Central Asian countries and Russia, which is becoming a very important partner. This means a new Northern policy. As for the new Southern policy, South Korea needs to expand ties with India.