Diplomatic Experts: "South Korea's Negotiating Approach with the U.S. Is Wise... Better Than a Bad Deal"

Kurt Tong, Partner at Asia Group,
Remarks at the APEC Summit Outlook Seminar
Economic Minister at the Embassy in the U.S.: "Hopes for a Trade Agreement"

Kurt Tong Asia Group (TAG) Partner. KEI

As South Korea and the United States continue discussions to finalize a trade agreement before the Asia-Pacific Economic Cooperation (APEC) summit at the end of this month, the South Korean government's measured approach to negotiations with the U.S. has received positive reviews from diplomatic experts.

Kurt Tong, Partner at Asia Group (TAG), stated at a seminar hosted by the Korea Economic Institute (KEI) in Washington, D.C. on the 15th (local time), under the theme "APEC Summit Outlook," that the South Korean government's decision to take its time in negotiations with the United States was a "wise approach."

He remarked, "If South Korea had accepted unreasonable terms due to time pressure, it would have eventually needed to renegotiate, which would not have been good for bilateral relations." He added, "Even if South Korea has to bear slightly higher tariffs for a while, it is probably better than rushing into a bad agreement."

He also noted, "With President Donald Trump's visit to South Korea imminent, both sides are being pushed to focus on the trade negotiations," and said, "We can expect some progress."

He further commented, "The South Korea-U.S. trade agreement will likely be quite similar to the U.S.-Japan trade agreement. Any other type of agreement would be politically difficult for the South Korean president to accept. Therefore, this agreement will be at a reasonable level."

He explained, "This is because practical considerations must be reflected, such as how much investment South Korea can actually handle, how quickly it can be implemented, under what conditions it can be carried out, and to what extent the South Korean government can provide support."

An Seryeong, Economic Minister at the South Korean Embassy in the U.S., who is in charge of economic diplomacy with the United States, stated, "Although President Trump's visit to South Korea at the end of this month has not been officially announced, we hope to reach a trade agreement before then."

Minister An also said, "There has been progress in the fields of security, investment, trade, and technological cooperation between South Korea and the United States. When President Lee and President Trump meet at the end of this month, both sides will be able to announce a lot of developments."

He continued, "Major South Korean companies are at a disadvantage compared to their competitors because negotiations with the United States have not yet been concluded, so it would be beneficial if the talks are wrapped up soon. However, as President Lee has repeatedly emphasized, any agreement must be commercially reasonable and mutually beneficial."

The issue is that even if President Trump visits South Korea, there is a high possibility that he will not attend the main APEC events. On October 13, Foreign Minister Cho Hyun stated at the National Assembly's Foreign Affairs and Unification Committee audit that it is highly likely President Trump will not be able to attend the APEC summit.

Regarding this, Minister An said that South Korea is closely coordinating with the United States, adding, "The attendance of the U.S. President is extremely important for the success of APEC, so we hope President Trump will participate."