Series of Meetings with High-Level U.S. Officials Including Secretary Lutnick
Calls for Easing Auto Tariffs and Adjusting Mutual Tariffs
Kim Jungkwan, Minister of Trade, Industry and Energy, is meeting with Howard Lutnick, Secretary of Commerce, on the 24th (local time) at the U.S. Department of Commerce conference room in Washington D.C. Photo by Ministry of Trade, Industry and Energy
As the deadline for tariff negotiations between South Korea and the United States approaches, Minister of Trade, Industry and Energy Kim Jungkwan and Trade Minister Yeo Hankoo are making all-out efforts to reduce tariffs and expand cooperation, meeting with high-level officials in Washington, D.C. on the 24th (local time).
On the morning of the same day, Minister Kim and Minister Yeo met with Secretary of Commerce Howard Lutnick at the Department of Commerce and proposed ways to strengthen bilateral cooperation in strategic manufacturing sectors such as shipbuilding, semiconductors, and batteries.
The meeting lasted for about 80 minutes. Both sides agreed to pursue a mutually beneficial settlement before August 1 and consented to hold follow-up negotiations as soon as possible. During the meeting, Minister Kim strongly requested tariff reductions on items such as automobiles, emphasizing, "We will make every effort to ensure that our companies are not disadvantaged compared to competitors."
On the previous day, the 23rd, Minister Kim also met with Secretary of Energy Chris Light. Minister Kim proposed expanding cooperation in clean energy and energy security and invited Secretary Light to attend the 'Energy Super Week' to be held in Busan at the end of August.
It is reported that during this visit to the United States, the government proposed a $100 billion investment package to the U.S. This initiative, which involves major companies such as Samsung, Hyundai Motor, and LG, is a strategic response mindful of Japan's $550 billion investment pledge and 15% tariff reduction agreement with the U.S. An official from the Ministry of Trade, Industry and Energy stated, "As we have promised to make a substantial contribution to the U.S. supply chain through investment and manufacturing cooperation, we are demanding corresponding measures in the form of tariff reductions."
In particular, South Korea is using shipbuilding cooperation as a key bargaining chip in the negotiations. Hanwha Ocean and HD Hyundai are evaluated as companies capable of participating in U.S. Navy maintenance and commercial shipbuilding, and the acquisition of the Philly Shipyard and technology cooperation are also being discussed. This aligns with the Trump administration's policy of rebuilding domestic manufacturing bases, making practical, interest-based exchanges possible.
However, the possibility of reaching a compromise on tariff rates remains uncertain. While a 15% reduction, similar to the agreement with Japan, is being discussed, the Trump administration places importance not only on tariff rates but also on the 'scale of investment' and 'regional job creation' as political justifications. On the other hand, South Korea is responding with investments exceeding $100 billion and strategic industry cooperation, but is maintaining a cautious stance on opening its market to U.S. agricultural products, which could be seen as excessive concessions.
In fact, there is strong backlash from the domestic agricultural sector, especially in major apple-producing regions such as Cheongsong, and the government has made it clear that traditional sensitive items such as rice and beef will be excluded from the negotiations. However, there are observations that a flexible approach may be taken for certain items, such as grains for bioethanol.
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