Yeo Han-koo Visits US for First Korea-US Trade Talks Under New Administration

Departure for the United States on the 22nd
Meeting with USTR Representative

The first high-level Korea-US trade consultations since the inauguration of the Lee Jaemyung administration will be held next week in Washington, DC. Yeo Han-koo, the new head of trade negotiations, will visit the United States in person to coordinate key issues such as tariffs, drawing attention to whether meaningful results can be achieved in the so-called "July Package."

According to the Ministry of Trade, Industry and Energy on the 21st, Yeo is scheduled to depart for the United States on the 22nd and hold trade consultations with senior US officials, including Jamison Greer of the USTR (United States Trade Representative).

This round of consultations is seen as a turning point for substantive negotiations covering major trade issues, including steel and automobile tariffs and non-tariff barriers. Prior to the launch of the new administration, South Korea and the United States had continued working-level discussions with the goal of reaching a comprehensive agreement on key trade issues by July 8. However, the pace of talks has slowed somewhat due to overlapping political events such as South Korea's presidential election and change of government.

The current negotiations, focused on tariff issues, have effectively entered a phase of hard bargaining. The United States is demanding that South Korea address non-tariff barriers, such as restrictions on imports of US beef aged over 30 months and limitations on the export of precision maps, in addition to seeking an improved trade balance through increased imports of US products.

Meanwhile, South Korea is making every effort to defer or reduce the 25% reciprocal tariff measures. In particular, the government plans to coordinate differences with the US side, focusing on sectors where Korean companies are most affected by tariffs imposed globally, such as steel and automobiles. In fact, South Korea's automobile exports to the United States fell by more than 30% year-on-year last month, making the impact of tariffs increasingly evident.

Although there is skepticism about reaching an agreement by the original deadline of July 8, there is growing interest in whether this high-level consultation could serve as a breakthrough.

Since taking office on June 12, Yeo has been refining negotiation strategies in consultation with working-level staff from the Ministry of Trade, Industry and Energy and related ministries. At the Trade Promotion Committee meeting held on June 17, he stated, "We will pursue ministerial-level shuttle negotiations as well as technical consultations with the US side as needed," adding, "Negotiations will proceed very intensively over the coming weeks."