"The Devil Is in the Details"... Ruling and Opposition Parties to Clash Over Tariffs in Standing Committees Next Week

Current Issues to Be Addressed by Strategy and Finance, Industry, and Foreign Affairs Committees on August 6
People Power Party: "Verify the Details First"
Democratic Party: "Accelerate Reforms for Public Welfare"

The conclusion of the South Korea-US tariff negotiations is a variable that will shape the political landscape in August. As this is a major economic issue directly related to the national interest, both the ruling and opposition parties are closely monitoring the political repercussions of the deal. The ruling party plans to accelerate legislative reforms for public welfare, having successfully concluded the negotiations. The opposition party, on the other hand, is warning against premature optimism, emphasizing the need to scrutinize the details of the tariff agreement.

Song Eonseok, Emergency Response Committee Chairman and Floor Leader of the People Power Party, is speaking at the Floor Strategy Meeting held at the National Assembly on August 1, 2025. Photo by Kim Hyunmin

According to political circles on August 1, the People Power Party will convene full meetings of the National Assembly's Strategy and Finance Committee, the Trade, Industry, Energy, SMEs and Startups Committee, and the Foreign Affairs and Unification Committee on August 6 to conduct inquiries into the tariff negotiations. The Agriculture, Food, Rural Affairs, Oceans and Fisheries Committee, chaired by the Democratic Party, is currently coordinating its schedule. Jeong Euiyong, the People Power Party's secretary for the Agriculture and Fisheries Committee, plans to hold a forum on August 4 to review the tariff negotiations on agricultural and livestock products.

The detailed contents of the tariff negotiations have not been disclosed, and there are conflicting explanations from the South Korean and US governments. Therefore, lawmakers have stated their intention to first verify the facts. Particular attention is being paid to the conditions surrounding South Korea's $350 billion (about 488 trillion won) investment in the US and whether agricultural and livestock markets will be opened. US Secretary of Commerce Howard Lutnick stated that the US would take 90% of the investment fund's profits, and President Donald Trump hinted at attracting additional investment during a summit to be held in two weeks. Kim Jungjae, the People Power Party's Policy Committee Chair, stated at a party meeting on August 1, "This is not the time to pop champagne just because the agreement has been reached," adding, "We will thoroughly analyze the impact on industry and the economy and prepare countermeasures."

Kim Byungki, Acting Party Leader and Floor Leader of the Democratic Party of Korea, is speaking at the Supreme Council meeting held at the National Assembly on August 1, 2025. Photo by Kim Hyunmin

The Democratic Party intends to support the successful conclusion of the tariff negotiations by first reviewing the follow-up tasks. With economic uncertainty reduced, the party has also signaled a rapid push for legislative reforms to improve public welfare. In particular, the party plans to quickly pursue the easing of the corporate breach of trust crime. Kim Byungki, Acting Party Leader and Floor Leader of the Democratic Party, stated at a Supreme Council meeting on this day, "We will ensure that the successful conclusion of the tariff negotiations leads to recovery and growth of the people's economy," adding, "We will swiftly revise the breach of trust crime, a representative economic criminal penalty."