Anduk Geun, Minister of Industry, "Considering Expansion of US LNG Imports... Switching Chinese Volume to the US"

Establishment of Consultative Bodies with the U.S.
on Shipbuilding, Energy, Non-Tariff Issues,
and the Alaska LNG Project

Minister of Trade, Industry and Energy Anduk Geun announced on the 4th that he is actively considering expanding imports of U.S.-produced liquefied natural gas (LNG). This plan aims to alleviate the trade imbalance with the United States while also serving as a bargaining chip in negotiations. Minister Ahn also hinted at the possibility of switching the volume currently imported from China to the U.S.

At a briefing with reporters held at the Ministry of Trade, Industry and Energy building on the same day, Minister Ahn said, "Our country's energy supply heavily depends on the Middle East, so diversifying import sources is important. U.S.-produced LNG could be an important option."

Regarding participation in the Alaska LNG project, Minister Ahn explained, "Since the U.S. regards this as a top-priority project, we decided to discuss how Korea will participate through a working-level consultative body." However, he added, "This project is not only being reviewed by us but has also been proposed by the U.S. to several countries including Japan, Taiwan, and India. Further review is needed to determine whether Korea must participate."

Korea has been one of the largest importers of U.S.-produced LNG since 2017. Considering the trade balance issue with the U.S., Minister Ahn believes that expanding LNG imports could also contribute to reducing the trade deficit. He said, "We are reviewing ways to diversify import sources by expanding long-term contract volumes this year or using levies imposed on oil. Through this, we can also consider the possibility of switching volumes imported from China to the U.S." He added, "We are preparing these measures in consultation with industry and government departments and are working to secure a stable supply line."

Cooperation in the shipbuilding sector was also a key discussion point during this visit to the U.S. It is known that the U.S. hopes to cooperate with Korean shipbuilding companies to strengthen its naval power and maritime transport capabilities. In particular, cooperation is desired in areas such as icebreakers, tankers, and MRO (maintenance, repair, and operations).

Regarding this, Minister Ahn said, "We have formed an inter-ministerial consultative body involving the Ministry of National Defense, Ministry of Foreign Affairs, and the National Security Office to participate in shipbuilding cooperation discussions." He added, "Within the U.S. White House, a task force related to shipbuilding is already operating. During this discussion, U.S. Secretary of Commerce Gina Raimondo confirmed a strong willingness to cooperate, and it is likely that the U.S. Department of Commerce will lead the consultations."

He continued, "Even though the shipbuilding industry has already secured orders for several years, discussions for cooperation with the U.S. are ongoing," and explained, "The U.S. side understands Korea's busy situation but has high expectations for cooperation."

Minister Ahn cited the establishment of a working group that can closely cooperate with the U.S. as the greatest achievement of this discussion. The working group will focus on four major issues: ▲ shipbuilding industry ▲ energy cooperation ▲ non-tariff issues ▲ Alaska LNG project. The Korean government plans to start consultations at the director-general level and gradually expand to headquarters-level meetings to expedite discussions with the U.S.

Minister Ahn said, "What is important now is to receive exceptions or adjustments through the consultation process even if tariffs are imposed," and evaluated, "Since the U.S. cannot create individual consultative bodies with every country worldwide, it is meaningful that we secured a negotiation channel first."

Regarding concerns about subsidy payments related to Korean companies' investments in the U.S., Minister Ahn said, "Subsidies are not given all at once. They are structured to be paid when certain stages are met according to contract conditions, so the U.S. government cannot easily change the contracts." He added, "Our companies have already signed subsidy-related contracts with the U.S., so maintaining good contractual relationships is important."

On the response to U.S. tariff impositions, Minister Ahn said, "Currently, a 25% tariff has been enforced on Canada and Mexico. This trend is likely to continue," and added, "For Korea, not only steel and aluminum but also semiconductors, automobiles, and bio sectors may be added."

He said, "The tariff measures announced by the U.S. will not end with just one instance," and explained, "In the second term of the Trump administration, we do not know what measures will come next, so we should not respond as if it is a one-off game. Therefore, creating a trade cooperation channel that allows continuous consultations was the most important goal of this visit to the U.S."

This content was produced with the assistance of AI translation services.