Trump Pressures for 25% Tariff Hike... Kim Yongbeom Says "100% Due to Legislative Delays in National Assembly" (Comprehensive)

"Frustration Over Delays in Legislative Process for Special Act on U.S. Investment"
"Will Provide Detailed Explanations of Legislative Efforts... Kim Jeonggwan and Yeo Hangoo to Discuss with U.S. Partners This Week"
"Considering Preliminary Reviews of Korea-U.S. Projects Even Before Special Act Is Enacted"
"Uncertainty Could Rise at Any Time... Importance of Explaining and Gaining Understanding"

Regarding U.S. President Donald Trump's recent remarks about "reimposing a 25% reciprocal tariff," Kim Yongbeom, the Blue House Policy Chief, stated, "It seems that there was dissatisfaction over delays in follow-up investments due to the lack of swift action in the National Assembly," adding, "We believe that 100% of the U.S. dissatisfaction stems from legislative delays in the National Assembly." Accordingly, he announced that if the legislative process is further delayed beyond expectations, the government would consider preliminary reviews of Korea-U.S. business projects even before the enactment of the Special Act on U.S. Investment.

Yonhap News

On the 28th, Kim made these comments during a press briefing at the Blue House Chunchugwan. He further explained, "The U.S. is aware that once the legislative review is completed in Korea, the procedures for the Korea-U.S. investment fund can begin," and added, "It appears that the U.S. thinks these procedures are progressing more slowly than expected, which has led to their frustration." He continued, "We understand that the U.S. desire to expedite investment projects is reflected in President Trump's recent social media message."

The Special Act on U.S. Investment includes provisions for establishing the Korea-U.S. Strategic Investment Fund and the Korea-U.S. Strategic Investment Corporation, as well as other legal and institutional frameworks necessary to implement investments in the United States. Kim stated, "I will thoroughly explain to the National Assembly the need for the special legislation in February," and added, "We will also calmly respond and seek solutions by providing detailed explanations to the U.S. government that both our administration and the National Assembly are making these efforts."

As the U.S. concerns have been confirmed, Industry, Trade and Energy Minister Kim Jeonggwan and Trade Negotiation Head Yeo Hangoo plan to continue discussions with their U.S. counterparts this week. Kim emphasized, "The communication channel between Minister Kim and U.S. Secretary of Commerce Howard Lutnick is the most important," and added, "Director Yeo will also meet with Jamieson Greer, the U.S. Trade Representative, sooner than scheduled to discuss the matter."

Additionally, Kim stated that even before the special legislation passes, the government would consider starting preliminary procedures, such as conducting initial reviews of investment projects. He clarified that sending investment funds before legislation is enacted is not an option, but said, "We need to consider whether there is any way to conduct preliminary reviews even before the law is passed," and added, "We are exploring ways to initiate preliminary procedures, such as establishing guidelines through resolutions at the Ministerial Meeting on External Economic Affairs."

Meanwhile, regarding the uncertainty that spread in the market following President Trump's social media message, Kim commented, "It is excessive to directly link this matter to the letter delivered through the U.S. Embassy in Korea or other related documents," adding, "The White House has also drawn a line, saying the letter is unrelated, and this is an issue that can be sufficiently explained and communicated." He also dismissed various concerns raised by some, stating that there have been no notable changes in the U.S. stance or signs of urgent conflict.

According to the Ministry of Science and ICT, James Heller, the U.S. Deputy Chief of Mission to Korea, sent a letter on January 13, designating Vice Prime Minister and Minister of Science and ICT Bae Kyunghoon as the primary recipient. The letter also included as references Foreign Minister Cho Hyun, Minister of Trade, Industry and Energy Kim Jeonggwan, and Fair Trade Commission Chairman Joo Byungki, among other heads of trade and regulatory authorities.

Kim also noted that uncertainty could increase at any time. He said, "Even if things are going well, if disagreements arise, we cannot rule out the possibility that the U.S. might press the 'tariff bell.' This applies to the entire process," and added, "It is important to quickly explain and justify domestic procedures to prevent heightened market anxiety."