Koo Yooncheol: "Masga Project Was the Biggest Contribution to Korea-US Customs Talks... Effectively Our Business"

Briefing by Deputy Prime Minister on Korea-US Negotiation Agreement
"Blocked Additional Opening of Rice and Beef Markets...Persuaded Trump"

Deputy Prime Minister and Minister of Economy and Finance Koo Yuncheol is reading a statement at the "Korea-US Trade Consultation Results Briefing" at the Korean Embassy in the United States on the evening of the 30th (local time). From left, Minister of Trade, Industry and Energy Kim Jungkwan, Deputy Prime Minister Koo Yuncheol, and Chief Trade Negotiator Yeo Hangoo. (Photo by Ministry of Economy and Finance)

Deputy Prime Minister and Minister of Economy and Finance Koo Yooncheol stated, "The $150 billion Korea-US shipbuilding cooperation package made the largest contribution to today's customs negotiations."

Deputy Prime Minister Koo made this announcement during a briefing on the results of the Korea-US customs negotiations held at the Embassy of the Republic of Korea in Washington, DC, on the 30th (local time). He said, "This agreement will allow our companies, which possess the world's top-level shipbuilding technology, to secure new growth opportunities."

He continued, "We succeeded in lowering the mutual tariffs that were scheduled to be imposed from August 1 and the automobile tariffs that have already been in effect since April to 15% each." He further explained, "For item-specific tariffs that may be imposed in the future, such as on semiconductors and pharmaceuticals, we secured a promise of most-favored-nation treatment, ensuring we will not be at a disadvantage compared to other countries."

Regarding the $150 billion Masga Project proposed by the Korean side, he said, "We plan to carry out the entire shipbuilding sector as our business, including the construction of new shipyards in the US, workforce training in shipbuilding, supply chain restructuring, and MRO (maintenance, repair, and overhaul)." He evaluated, "Our companies, which have the world's best shipbuilding technology, have secured a new opportunity for growth."

Deputy Prime Minister Koo also conveyed that "President Donald Trump highly praised Korea's shipbuilding capabilities and requested cooperation so that ship construction in the US can proceed as quickly as possible." He added, "There is a strategic need for Korea and the US to cooperate in economic security sectors such as nuclear power, LNG, secondary batteries, and critical minerals."

He went on to explain, "The $150 billion (shipbuilding cooperation fund) and the remaining $200 billion (investments in semiconductors, nuclear power, secondary batteries, etc.) mentioned by President Trump on Truth Social together constitute the Korea-US financial package. The significance lies in the fact that this agreement amounts to 36% of the $550 billion investment commitment Japan secured from the US."

Regarding the prevention of additional imports of beef over 30 months of age and rice, he said, "Although President Trump strongly demanded a reduction of tariff barriers on agricultural and livestock products, the negotiation team’s persistent efforts led to an agreement not to further open the market." However, he added, "We agreed to continue discussions on non-tariff barriers and technical issues, such as improving quarantine procedures and easing automobile emissions standards."

Deputy Prime Minister Koo also emphasized that President Trump showed great interest in the quarantine procedures for fruits and vegetables during today's talks, but it was agreed that there would be no additional market opening in this area.