Amid U.S. 25% Tariff Threat, Kim Jeonggwan Says "Meeting Lutnick Tomorrow" (Comprehensive)

Urgent Trip to the U.S.: Emphasizing Unchanged Investment Commitment
Aiming to Dispel Misunderstandings Over Legislation
Ongoing Political Standoff in Korea Over Special Act

As U.S. President Donald Trump hinted at restoring a 25% tariff on Korean goods due to delays in Korean investment in the United States, Kim Jeong-Kag, Minister of Trade, Industry and Energy, announced on the 28th (local time) that he would meet with his U.S. counterpart, Secretary of Commerce Howard Lutnick, on the afternoon of the 29th (local time; morning of the 30th in Korea). The Korean government maintains that there are significant misunderstandings on the part of the United States regarding the legislative situation related to Korean investment in the U.S.

Kim Jeong-Kag, Minister of Trade, Industry and Energy, responded to questions from the Korean press after arriving through Dulles International Airport near Washington D.C. on the night of the 28th (local time) to address the 'Trump tariffs' issue. Photo by Yonhap News Agency

Upon arriving at Dulles International Airport near Washington D.C. that night, Minister Kim told reporters that President Trump's intention to raise tariffs on Korean goods from the current 15% to 25% appeared to stem from dissatisfaction with the progress of Korea's domestic legislation. "From what we've heard, it seems there is discontent regarding the status of our domestic legislative process," he said. He added, "President Trump also expressed this view, and after his remarks on tariffs, I spoke once with Secretary Lutnick, who also seemed to hold this perspective."

The "domestic legislative situation" mentioned by Minister Kim refers to the "Special Act on Strategic Investment Management between Korea and the United States (Special Act on U.S. Investment)," which is currently pending in the National Assembly. While the ruling Democratic Party of Korea has called for expedited passage, the opposition insists that parliamentary ratification is necessary. As of the morning of the 28th, the standoff between the two parties continued.

Minister Kim further stated, "I intend to provide a thorough explanation to ensure there are no misunderstandings about the status of our domestic legislative process. Since the Korean government's position regarding cooperation and investment with the United States remains unchanged, I will communicate this clearly." He emphasized, "Secretary Lutnick and I have a relationship where we can discuss any issue openly, so I plan to have a candid conversation."

While on a business trip to Canada, Minister Kim hurriedly traveled to the United States after President Trump announced on the 26th that tariffs on Korean automobiles, timber, pharmaceuticals, and all other reciprocal tariffs (country-specific tariffs) would be raised from 15% to 25%. However, just a day later on the 27th, President Trump shifted to a "negotiation mode," stating that he would resolve the issue amicably with Korea.

Regarding reports that the U.S. government had begun the process of publishing the proposed tariff increases in the Federal Register following President Trump's remarks, Minister Kim said, "I learned about it through domestic news reports and am currently assessing the situation. When such discussions arise, it is natural for working-level officials to begin preparations, so I understand it as being at that stage. I will discuss the details further during consultations."

When asked when Korea's investment in the United States (totaling 350 billion dollars) would begin, Minister Kim responded, "In addition to legislation, there are project-related matters that need to be addressed, so we will have to coordinate closely with the U.S. government." Regarding the timing, he added, "I will not make any predictions, but we will work to ensure that the project is launched at an optimal time, with the support of both countries."

Regarding complaints in the United States about Korea's digital regulations and the Coupang incident, Minister Kim stated, "I do not believe these issues are significant enough to affect fundamental matters such as tariffs. They can be managed appropriately." He also said, "If a large-scale personal data breach like the Coupang incident had occurred in the United States, I believe the U.S. government-or any government-would have responded even more strongly than the Korean government did. Since the U.S. has a much firmer stance on consumer rights and interests, I am confident that a thorough explanation will allow the U.S. government to understand our position."

Minister Kim also mentioned that during his visit to the United States, he plans to meet not only with Secretary Lutnick, but also with Energy Secretary Chris Wright and National Energy Commission Chairman Doug Burgum, among other senior officials from the Trump administration. He intends to convey the concerns of Korean industry, especially given that key export items such as semiconductors, automobiles, and batteries could become direct targets of the proposed tariff increases.