Trade Chief Yeo Hangoo Holds Talks with U.S. Commerce Secretary and USTR... Accelerates "July Package" Negotiations

Yeo Hangoo, Director General for Trade, (left) is greeting Gina Raimondo, U.S. Secretary of Commerce, on the 23rd (local time) at the U.S. Department of Commerce conference room in Washington D.C. Photo by Ministry of Trade, Industry and Energy

Following the inauguration of the Lee Jaemyung administration, the first trade chief has visited the United States to officially begin high-level negotiations over tariff issues. With bilateral consultations having been delayed due to a political vacuum, attention is now focused on whether this development will set a new direction for future Korea-U.S. trade relations.

The Ministry of Trade, Industry and Energy announced on the 24th that Yeo Hangoo, Director General for Trade Negotiations, visited Washington D.C. on the 23rd (local time) and held his first round of talks with Howard Lutnick, U.S. Secretary of Commerce, and Jamison Greer, USTR Representative.

During these talks, Director General Yeo once again stressed the need for mutual tariff exemptions for Korea, particularly regarding major items such as steel and automobiles. He also reaffirmed with the U.S. side the intention to swiftly reach a mutually beneficial agreement between the two countries.

Director General Yeo especially emphasized that, now that the new administration has secured democratic legitimacy and a clear mandate, the time is right to advance negotiations in earnest. He identified the current period, with political uncertainty resolved, as the optimal moment to restart talks. He also highlighted that these negotiations go beyond simply seeking tariff exemptions, characterizing them as “mutually beneficial consultations” that encompass the broader strategic cooperation framework in the manufacturing sectors of both Korea and the United States.

Ye Han-gu, Director General for Trade Negotiations (right), is taking a commemorative photo on the 23rd (local time) in the meeting room of the U.S. Department of Commerce in Washington D.C. with Gina Raimondo, U.S. Secretary of Commerce (center), and Katherine Tai, USTR Representative (left).

This meeting is seen as a test case for whether the United States will reconsider the high tariffs currently imposed on Korea’s key export items such as automobiles and steel. Its significance is heightened by the fact that it took place just ahead of the deadline for the “July package” negotiations. The government plans to mobilize its U.S. negotiation task force and relevant ministries to respond to the third Korea-U.S. Technology Consultation, which will be held from June 24 to 26.

In the short term, the government aims to use these negotiations to ease the burden of high U.S. tariffs, while in the long term, it seeks to strengthen supply chain cooperation and industrial strategy alignment between Korea and the United States. However, some observers note that it remains uncertain to what extent Korea’s demands will be reflected, given the ongoing trend of prioritizing domestic industries in the United States.

A government official stated, “The industrial supply chains of Korea and the United States are already deeply intertwined, so unilateral measures could result in mutual harm. This round of talks could serve as a turning point for stabilizing the trade environment.”

Director General Yeo also remarked, “We will work closely with the U.S. side to conduct focused and expedited negotiations,” adding, “We will make every effort to establish a new framework for the Korea-U.S. manufacturing partnership.”