Choi Acting President: "South Korea's Trade Surplus with the U.S. Is a Temporary Phenomenon Due to Increased Local Investment in the U.S."

WSJ Interview... Seeks Direct Communication with Trump
Will Explain Exceeding Trump’s First-Term Commitments
"Measures Hindering Trade Expansion Are Not Beneficial"

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Choi Sang-mok, Acting President and Deputy Prime Minister as well as Minister of Strategy and Finance, stated, "South Korea exceeded its investment commitments during President Trump's first term, and the trade surplus with the U.S. is a temporary phenomenon resulting from the expansion of Korean companies' direct investment in the U.S. local market."

On the 12th (local time), in an exclusive interview released by the major U.S. media outlet The Wall Street Journal (WSJ), Acting President Choi expressed concern that "President Donald Trump's attention is likely to turn toward South Korea, one of the world's largest trade surplus countries," adding, "I hope to communicate directly with him."

In the interview with WSJ, Acting President Choi explained that the increase in exports of intermediate goods due to the expansion of Korean companies' direct investment in the U.S. led to a temporary rise in the trade surplus, and that the surplus would shrink if demand for intermediate goods decreases. He also mentioned that the purchase commitments of U.S.-made products during Trump's first administration were exceeded.

Regarding this, WSJ reported that large Korean conglomerates such as Samsung and Hyundai have invested hundreds of billions of dollars in the U.S., influenced by incentives provided by the previous Biden administration, and that South Korea has been the country with the largest greenfield investment (investment in new facilities) in the U.S. over the past two years.

This interview, arranged at WSJ's request, was conducted with the judgment that it was necessary to clearly convey South Korea's position to the U.S. amid expected trade negotiations. It is the first foreign media interview since the transition to Acting President Choi's administration on December 27 last year.

Just before the interview report, at around 1 p.m. the previous day (Korean time), the U.S. administration implemented a 25% tariff measure on steel and aluminum products worldwide, including South Korea.

WSJ highlighted Acting President Choi's remark at the Cabinet meeting on the 11th that "the arrow of America First policy led by President Trump has begun to be aimed at South Korea."

South Korea signed a Free Trade Agreement (FTA) with the U.S. in 2007, eliminating tariff barriers, and currently, most products imported from the U.S. are tariff-free. WSJ also introduced the South Korean government's position that President Trump's statement during his congressional speech on the 4th, claiming that South Korea's average tariffs are four times higher than those of the U.S., is inaccurate.

Acting President Choi said, "South Korea and the U.S. should pursue a more balanced and mutually beneficial relationship in trade and economic fields to ultimately elevate the Korea-U.S. alliance." He added, "The South Korean government, together with the private sector, is fully prepared for this."

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Acting President Choi said, "Considering our historical position and national interests, it would not be beneficial to take measures that hinder trade expansion," adding, "Mexico or Canada are not appropriate benchmarks for South Korea's trade strategy." WSJ explained that unlike Mexico or Canada, neighboring countries with large mutual trade volumes, South Korea's imports from the U.S. are relatively small, making it impossible to adopt the same response strategies as those countries.

WSJ introduced him as a relatively anonymous figure who earned a Ph.D. in economics from Cornell University and has only walked the path of an economic bureaucrat, now receiving secret protection for the first time in nearly 40 years of public service. He said, "Since becoming Acting President, I have not taken a single day off and have mostly had meals delivered to my office." He also mentioned that after taking on the acting role, "our family's privacy has completely disappeared."

WSJ explained that the Constitutional Court's ruling on President Yoon's impeachment trial is imminent, and if President Yoon is impeached, an early presidential election must be held within 60 days, meaning Acting President Choi's tenure will last only a few months.

Finally, when asked about running for the presidential election, Acting President Choi laughed, shook his head, and added, "For now, I need to focus on fulfilling my duties."