Trade Minister Returns After Korea-U.S. Customs Talks: "I Believe Unnecessary Misunderstandings Have Been Resolved"

Explaining the Situation in Korea's National Assembly
"Clearly Stated There Was No Intention of Non-Implementation or Delay"

Kim Jeong-Kag, Minister of Trade, Industry and Energy, who visited the United States, is giving an interview to the press after returning through Terminal 2 at Incheon Airport on the 31st. Photo by Yonhap News

Kim Jeong-Kag, Minister of Trade, Industry and Energy, stated regarding the Korea-U.S. customs negotiations, "Our mutual understanding has deepened significantly," and added, "I believe any unnecessary misunderstandings have been resolved."

On the afternoon of the 31st, upon returning to Korea through Incheon Airport, Minister Kim said, "I made it very clear that the Korean government has no intention whatsoever to delay or fail to implement the customs agreement that was reached at that time."

While in Canada to support a bid for a Canadian submarine project, Minister Kim was urgently dispatched to the United States on January 26 (local time) after U.S. President Donald Trump mentioned that he would raise reciprocal tariffs on Korean products from 15% back to the pre-Korea-U.S. trade agreement level of 25%, citing delays in the enactment of Korea's Special Act on Investment in the United States.

In Washington, D.C., Minister Kim met twice with Howard Lutnick, U.S. Secretary of Commerce, focusing on understanding the U.S. position and explaining Korea’s stance.

On this day, Minister Kim said, "The U.S. side expressed considerable disappointment that the special bill remains pending in the National Assembly, despite Korea's progress."

He continued, "I fully explained that the special bill was submitted to the National Assembly in November of last year, that December was mostly dedicated to budget discussions, and that in January of this year, the confirmation hearing for the Minister of Economy and Finance left no room to discuss the special bill."

Minister Kim also conveyed, "Going forward, we will proceed with the special bill at a very rapid pace and ensure that our understanding aligns with that of the United States."

When asked whether he believes the United States is actually taking steps to increase tariffs on Korean products, Minister Kim replied, "While President Trump has made such statements, the process of raising tariffs has already begun," adding, "They are preparing for publication in the official gazette and getting ready to implement sanctions."

He further stated, "These discussions are not ending here; we will continue internal deliberations and plan to hold another video conference with the U.S. side from Korea soon. Please watch how the final outcome unfolds through these processes."

Regarding whether there are plans for a preliminary review of any projects before the enactment of the special act on investment in the United States, Minister Kim said, "I have not received any specific instructions," and added, "I think we need to discuss this further."

Minister Kim dismissed the view that the U.S. investment pressure is being hindered by other issues such as the Online Platform Fairness Act (Onple Law) or the so-called 'Coupang issue.'

Minister Kim stated, "While the Onple Law and related topics have been widely reported in the Korean media, such issues have never once come up in negotiations with the United States," and added, "The U.S. side also seems to believe these are not significant enough to affect tariffs."

Additionally, during his visit to the United States, Minister Kim met with Chris Light, Secretary of Energy, to discuss cooperation in areas such as energy and resources.

Minister Kim said, "It is not something I can discuss in detail," but added, "There were various discussions regarding cooperation on nuclear energy between Korea and the United States."

When asked about the outline of the first U.S. investment project, Minister Kim replied, "We are not at the stage of discussing specific projects," and added, "Official procedures will only proceed after the special act is passed. The U.S. side has expressed disappointment about the current situation where this has not yet happened."

He concluded, "I believe it is necessary to pass the special act as quickly as possible, and the government will make efforts toward this. We also plan to explore ways to discuss potential projects even before the bill is passed."