The second issue of the Pacific Report, presented by the Institute of International Affairs(IIA), has been published. In this issue, Professor Wang Hwi Lee, the professor in the Department of Political Diplomacy at Ajou University, contributed an article titled "South Korea's Recent Trade Deficit with China: Causes and Prospects." He highlights that the major causes of the trade deficit lie not only in structural and cyclical factors but also in geopolitical factors. Specifically, the semiconductor industry, which accounts for over 20% of Korean exports, is identified as the industry facing the greatest geopolitical risks. The second issue of the Pacific Report will serve as a valuable reference for students interested in international political economy, economic security, and the US-China strategic competition.