Kim Yongbum Visits U.S. Again: "Korea-U.S. Customs Talks in Final Stage, One or Two Key Issues Remain"

Visit to the U.S. with Minister Kim Jeonggwan
Final Negotiations with Secretary Lutnick before APEC
"If the U.S. Understands Our Position, a Positive Outcome Is Expected"

Kim Yongbeom, Chief Presidential Secretary for Policy, stated on the 22nd (local time) that the South Korea-U.S. customs negotiations have reached their final stage, with only one or two key issues remaining.

Yonhap News Agency

Speaking to reporters upon arrival at Dulles International Airport near Washington, D.C., Kim said, "Over the past few weeks, both countries have engaged in very constructive and productive discussions on major issues," adding, "The negotiations are now in their final stage."

On this day, Kim visited the United States together with Minister of Trade, Industry and Energy Kim Jeonggwan. After holding talks with Howard Lutnick, the U.S. Secretary of Commerce and the American counterpart in the negotiations, on the 16th, both officials returned to Korea on the 19th and 20th, respectively. However, after reporting the details of the discussions to President Lee Jaemyung, they traveled back to the U.S. for further talks.

When asked about the progress of the negotiations, Kim explained, "On many topics, our positions have come quite close, but on one or two issues, there are still significant differences." He continued, "We need to be cautious, as parts that were previously tentatively agreed upon could be rolled back during the process. However, differences on many issues have been coordinated, and if the United States takes our position a bit more seriously this time, I believe we could reach a good outcome."

The core issue is the composition of the $350 billion investment package South Korea has pledged for the United States. South Korea wants to reduce the portion of direct investment and extend the investment period as much as possible, while the United States has insisted that cash investments be maximized within the term of the Donald Trump administration. However, it is known that the U.S. side has recently softened its stance somewhat.

Regarding individual issues such as extending the investment period, Kim said, "It must proceed within a range we can tolerate, and there must not be a significant shock to our foreign exchange market, as these matters are all interconnected." Regarding the foreign exchange market stability standard (annual $15 billion to $20 billion) suggested by the Bank of Korea for investments in the U.S., he explained, "Each institution and the U.S. side have conducted their own analyses, and discussions are ongoing based on those findings."

During this trip, Kim and Minister Kim are scheduled to hold final talks with Secretary Lutnick and then return directly to Korea via Atlanta.

Minister Kim explained the reason for this visit, saying, "We determined that face-to-face negotiations would be more effective than virtual discussions for resolving the remaining issues."

At the end of July, South Korea and the United States reached a broad trade agreement, but have yet to finalize negotiations due to differences over the detailed implementation plan for the U.S.-bound investment package. As a result, ahead of the South Korea-U.S. summit to be held during the Asia-Pacific Economic Cooperation (APEC) summit in Gyeongju, South Korea next week, both sides are accelerating last-minute coordination to formalize the agreement in writing.