Vice Minister of Industry: "Working Group Meetings for 'July Package' to Begin Next Week"

Briefing on the Results of the Korea-U.S. 2+2 Trade Consultation

Sungtaek Park, 1st Vice Minister of the Ministry of Trade, Industry and Energy, stated on the 28th, "As early as next week, a full-fledged working group meeting will begin to develop the Korea-U.S. July Package."

Speaking to reporters at the Government Complex Sejong that day, Vice Minister Park said, "The working group is expected to be finalized through Korea-U.S. consultations in the middle to latter part of this week," adding, "This is the plan."

Sungtaek Park, 1st Vice Minister of the Ministry of Trade, Industry and Energy. (File photo)

Previously, on the 24th (local time), Korea and the United States held a '2+2 Trade Consultation' in Washington, D.C. During the meeting, the Korean government officially requested the removal of reciprocal tariffs as well as tariffs on key items such as automobiles and steel. However, instead of reaching a concrete agreement on these issues, both sides established a framework for future discussions and a timeline for negotiations.

Regarding the outcome of the 2+2 Trade Consultation, Vice Minister Park explained, "During the meeting, both sides agreed to focus discussions on four main areas: tariffs and non-tariff barriers, economic security, investment in the U.S., and exchange rates. The Ministry of Trade, Industry and Energy and the U.S. Trade Representative (USTR) agreed to develop the July Package by the negotiation deadline of July 8." He added, "Our side introduced visions for trade balance and cooperation in the shipbuilding and energy sectors, and presented the position that not only reciprocal tariffs but also newly imposed tariffs on items such as automobiles, steel, and aluminum should be resolved comprehensively."

Consultations with the U.S. side are scheduled to begin next week. Vice Minister Park said, "This week, we will begin technical discussions, and in the middle of next month, when USTR Representative Jamison Greer visits Korea, we will continue with ministerial-level consultations." He continued, "This will be Greer's first overseas visit since taking office, and as many major countries are expected to participate in the Asia-Pacific Economic Cooperation (APEC) event, this event is anticipated to become a major stage for tariff negotiations beyond APEC."

As Korea and the United States have agreed to develop the July Package before July 8, the final decision will fall to the next Korean government. Vice Minister Park said, "During this consultation, we fully explained the Korean political situation, including the presidential election in June, and the U.S. side also understood that Korea's unique political circumstances could be a limiting factor in the Korea-U.S. consultations." He added, "However, with only about 70 days left until July 8, and even less time after the Korean presidential election, Korea has no reason to rush, but there is also no room to hesitate."

He made it clear that the final agreement on the July Package would be the responsibility of Korea's next government. Vice Minister Park said, "With only 70 days, even if we hold meetings every week, there will only be a few opportunities for consultation, so it is a challenging situation to achieve results." He emphasized, "We will clarify both countries' interests and accelerate progress on areas without disagreement before the Korean presidential election, but since the Korea-U.S. consultations are a 'package deal' that must be addressed comprehensively, it is theoretically impossible for all decisions to be finalized before the election."

Regarding participation in the Alaska Liquefied Natural Gas (LNG) project, a decision will be made after due diligence. Vice Minister Park said, "We are forming a due diligence team led by the Director General for Energy Policy at the Ministry of Trade, Industry and Energy, and the schedule for the due diligence will be determined soon." He added, "Project participation must be preceded by a feasibility assessment."

Korea-U.S. cooperation in shipbuilding is expected to accelerate. Vice Minister Park said, "As former U.S. President Donald Trump mentioned, from the U.S. perspective, rebuilding the shipbuilding industry is of great significance and aligns with U.S. national interests, so various discussions are underway." He continued, "Since the U.S. faces limitations without an ally like Korea, the goal is to create a win-win solution for both Korea and the United States, rather than unilateral support from Korea."