Presidential Office: 50,000-Unit Safety Limit on US Cars Abolished, Limited Impact on Domestic Market

Kim Yongbeom Expresses Regret Over Tariff Negotiations
Presidential Office Explains Removal of Safety Standards Limit for US Automobiles
Limited Impact Expected on Domestic Market

Kim Yongbeom, Chief of Policy Office at the Presidential Office, is walking toward the microphone on the 31st at the Presidential Office building in Yongsan, Seoul, to hold a briefing on the conclusion of the Korea-US tariff negotiations. Photo by Yonhap News

The Presidential Office announced on July 31 that it has abolished the upper limit on safety standards previously applied to the import of American automobiles. However, it analyzed that the impact on the domestic market would be limited.

Previously, President Donald Trump stated on his social networking service (SNS) that, following the conclusion of the Korea-US tariff negotiations, the automobile and truck markets had been fully opened.

In relation to this, the Presidential Office explained that this meant the removal of safety standard regulations. When vehicles of US origin are imported into Korea, they are considered to have met Korean safety standards if they satisfy US safety standards. However, this was previously allowed only up to 50,000 units per manufacturer.

Yoon Sunghyuk, Secretary for Industrial Policy at the Presidential Office, said at a briefing in Yongsan on this day, "Through discussions with the United States, we have abolished the 50,000-unit upper limit," and added, "Since there are no (American) manufacturers exceeding 50,000 units, the practical impact on our automobile market is limited."

Regarding the failure to achieve the targeted tariff rate of 12.5%, Kim Yongbeom, Chief Policy Officer, expressed regret. Kim stated, "Even if the fund ceiling were raised, if 12.5% were accepted, we would have negotiated accordingly," and added, "All recent deals have been at 15%."

Kim further emphasized, "There is a lot of noise in the United States about having made too many concessions," and added, "It was not easy to secure a 15% rate."