[Q&A] Policy Chief: "No Further Opening of Agricultural Market... Insisted on 12.5% Auto Tariff Until the End"

Kim Yongbeom, Chief Presidential Secretary for Policy, Briefing
No Export of High-Precision Maps or Purchase of American Weapons
Online Platform Act Discussed but Excluded from Final Agreement
Steel Item Tariffs "Not Discussed"

Yongbeom Kim, Director of Policy Office at the Presidential Office, is answering reporters' questions after a briefing on the conclusion of the Korea-US tariff negotiations at the Presidential Office building in Yongsan, Seoul, on the 31st. Photo by Yonhap News

On July 31, Kim Yongbeom, Chief Presidential Secretary for Policy, announced at a briefing at the Yongsan Presidential Office that "the 25% reciprocal tariff the United States was set to impose on Korea starting August 1 has been reduced to 15%." He added, "With this agreement, our companies can now compete on equal or even superior footing with major countries." At the center of the negotiations were a $150 billion shipbuilding cooperation fund and a $200 billion fund for semiconductors, nuclear power, secondary batteries, and bio industries. The following is a Q&A with Chief Secretary Kim.

- What about the demands for the export of high-precision maps and the purchase of American weapons?

▲This deal was focused on trade issues. We responded quickly and defensively in the trade sector and made no additional concessions.

- There was strong pressure to open up the agricultural market.

▲Taking into account food security and the sensitivity of the agricultural sector, we agreed not to further open the domestic rice and beef markets.

- If a 15% tariff is imposed on automobiles, does the FTA lose its effect?

▲Yes. We insisted on 12.5% until the end. However, President Trump said, "Everyone gets 15%." The FTA is being significantly undermined.

- What about discussions on the Online Platform Act and GPU purchases?

▲These topics were discussed during the negotiation phase, but they did not make it to the final negotiation table.

- Is the fund entirely direct investment?

▲There is some direct investment, but the proportion is not high. Most of it consists of loans and guarantees. In terms of proportion, guarantees account for the largest share. Direct investment will be very low in percentage terms.

- Of the $200 billion, what is the investment amount for semiconductors, secondary batteries, and bio industries?

▲Nothing has been decided. The business areas were listed only as examples.

- Will the $100 billion LNG purchase announced by President Trump actually happen?

▲Yes, it is $100 billion. LPG, LNG, and coal are all imported in that general volume. There is no issue. This is not about creating new demand, but rather about shifting the composition from Middle Eastern sources to American sources.

- How was the 25% steel tariff adjusted?

▲(Yoon Sunghyuk, Industrial Secretary) There were no discussions about tariffs on steel and aluminum items. When item tariffs are imposed, there are also tariffs on derivatives. The relevant tariff is applied according to the added value.

- The U.S. Department of Commerce is said to be taking 90% of the investment fund's profits.

▲I have no intention of disputing that. I do not know what the U.S. is thinking, but it is difficult to make a reasonable inference. Internally, it may be considered a reinvestment concept. It will likely be specified during the consultation stage and examined on a project-by-project basis. At that time, we will have the opportunity to express our position in a way that does not harm our interests.