Kim Jeonggwan and Lutnick Fail to Reach Conclusion After Two Days of Tariff Talks: "Dialogue to Continue"

No Agreement Reached After Over Two Hours of Talks in Washington
Yeo Hangoo to Continue Follow-up Negotiations On-site

Kim Jeonggwan, Minister of Trade, Industry and Energy (left), is discussing Korea-US trade issues including tariffs with Howard Lutnick, US Secretary of Commerce, on the 29th (local time) at the US Department of Commerce conference room in Washington D.C. Ministry of Trade, Industry and Energy

Kim Jeonggwan, Minister of Trade, Industry and Energy, and Howard Lutnick, US Secretary of Commerce, continued their discussions on tariffs and trade issues for a second day, but failed to reach a concrete agreement or conclusion. Both sides agreed on the need to continue dialogue and consultations in the future.

After more than two hours of talks with Secretary Lutnick at the US Department of Commerce in Washington D.C. on January 30 (local time), Minister Kim told reporters, "We fully explained our respective positions and broadened our mutual understanding," but added, "We were not able to reach an agreement that could serve as a compromise."

Minister Kim particularly emphasized that "further dialogue is needed," and when asked about the specific timeline or scope of the US plan to increase tariffs, he avoided a direct answer, saying, "Negotiations are still ongoing."

Minister Kim assessed that his visit to the US provided an opportunity for both countries to better understand each other's positions on the tariff issue through direct dialogue. However, he explained that in order to ensure that consultations continue without interruption, additional discussions will be held via video conference and other means even after his return to Korea.

During the negotiations, the Korean government emphasized its commitment to expediting domestic legislative procedures, such as the Special Act on Investment in the US, and made efforts to address some of the US side's concerns through these measures. According to the Ministry of Trade, Industry and Energy, Secretary Lutnick also confirmed a shared understanding that investment projects in the US should be pursued in a way that is mutually beneficial for both countries' industries.

The Korean government believes that, rather than reaching a technical agreement in a short period, it is inevitable that a medium- to long-term negotiation process will be required to coordinate legislative timelines and investment implementation frameworks. There is also analysis within and outside the government that, since the US is using tariffs as leverage to pressure investment implementation, issues related to tariffs, investment, and legislation are likely to be interconnected as a package in future consultations.

For the time being, the government plans to maintain negotiation momentum by conducting both high-level and working-level consultations in parallel. The plan is to continue contacts with the US Department of Commerce and trade authorities, centered around Yeo Hankoo, the Chief Negotiator for Trade, who remains in the US, and to consider additional high-level consultations if necessary. The Ministry of Trade, Industry and Energy stated, "We are focusing on minimizing the uncertainty faced by Korean companies due to tariff issues," and added, "We will mobilize all communication channels with the US side to continue consultations."