Key Sticking Points Remain in Korea-US Tariff Negotiations
If Talks Proceed Smoothly, Security Achievements May Also Be Announced
If Differences Persist, Even Agreed-Upon Items Will Not Be Disclosed
Kim Yongbeom, Chief of Policy Office at the Presidential Office, is speaking on the 22nd before departing from Incheon International Airport Terminal 2 to Washington DC, USA, for additional discussions on Korea-US tariff negotiations. Photo by Yonhap News
Kim Yongbeom, Chief of Policy Office, and Kim Jeonggwan, Minister of Trade, Industry and Energy, have departed for the United States once again for follow-up discussions on the Korea-US tariff negotiations. With the negotiation team having delivered an in-person report to President Lee Jaemyung on the details of the recently accelerated $350 billion (approximately 500 trillion won) 'US Investment Package' on the 21st, their goal is to fully resolve the remaining one or two key issues. Depending on the decisions made by the leaders of both countries, it is expected that the outcome of the tariff negotiations will be determined before the Asia-Pacific Economic Cooperation (APEC) Summit, which will take place next week in Gyeongju.
On the 22nd, before departing for the United States at Incheon International Airport, Kim Yongbeom told reporters, "I am going to the US not to accept their final proposal, but to create a negotiation plan that best serves our national interests," adding, "While many differences between the two countries have been narrowed, there remain one or two areas where our positions are still in sharp opposition."
This visit to the US by Kim comes just three days after he returned from tariff negotiations in the United States on the 19th. On the previous day, the 21st, Kim, together with Minister Kim, reported the outcome of the US visit to President Lee twice, and is departing again according to the President’s instructions. An official from the Presidential Office explained, "There are still one or two unresolved issues, and he is going to the US with the President’s stance on those matters." If all issues are resolved in this round of negotiations, the team is expected to begin the final coordination of the announcement method and wording.
According to the Presidential Office and relevant ministries, the US government recently proposed an advanced negotiation plan regarding the 'US Investment Package,' which the Korean government has insisted upon, including: ▲ adjustment and phased implementation of investment amounts ▲ adjustment of the composition ratio of cash investment, guarantees, and loans ▲ authority over investment destination selection and profit sharing ▲ foreign exchange market stabilization measures. These developments are the result of persistent negotiations by key officials, including Minister Kim Jeonggwan, who have traveled to the US whenever possible to engage with their counterparts.
If Negotiations Are Concluded, Announcement Will Include 'Washington Talks' Agreement... Partial MOU Not Considered
Depending on the progress of the negotiations, the Korea-US summit at APEC may see the simultaneous announcement of agreements not only on tariff reductions but also in the security sector. Kim Yongbeom stated, "The previous Korea-US summit in Washington achieved significant results, but they were not publicly consolidated and announced," adding, "If an MOU on trade is finalized, I expect that the major achievements tentatively agreed upon at the Washington talks could be announced all at once." If the agreement proceeds smoothly, it could also include matters such as increased defense spending, the purchase of US-made weapons, and revisions to the nuclear agreement.
However, Kim also expressed caution, stating, "Negotiations always involve the other party and the situation can change at any time, so it is difficult to make predictions in advance."
Conversely, if Korea and the US fail to narrow their differences, it is likely that no agreement will be produced at the APEC summit between the two leaders. Kim stated, "The government is not considering the option of signing a memorandum of understanding (MOU) based only on the issues agreed upon up to a certain point while key issues remain unresolved." This indicates that the government does not intend to use APEC as the deadline for concluding negotiations. Some observers predict that even if a joint statement or agreement is announced at APEC, the signing of an MOU that would actually effectuate tariff reductions may be delayed further.
Kim Jeonggwan, Minister of Trade, Industry and Energy, who is traveling to the US with Kim Yongbeom and will meet with US Commerce Secretary Rutnik, emphasized regarding the goal of this visit, "Rather than wrapping up the negotiations, I expect that there will be tension until the very last moment," adding, "We will do our utmost to ensure that our national interests are reflected in the final agreement, right up to the last minute and second."
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