Minister Kim Jungkwan Meets U.S. Commerce Secretary in New York for Follow-up Tariff Negotiations

Follow-up Talks Stall Over Structure of U.S. Investments
Lutnick, U.S. Tariff Chief: "Accept or Face Tariffs"
Office of the President: "National Interest Comes First in Negotiations"

Kim Jung-kwan, Minister of Trade, Industry and Energy, who is currently visiting the United States, reportedly held follow-up discussions on the Korea-U.S. tariff negotiations with Howard Lutnick, U.S. Secretary of Commerce, on the 12th (local time).

Kim Jung-kwan, Minister of Industry, and Gina Raimondo, U.S. Secretary of Commerce. Photo by Yonhap News

According to diplomatic sources, Minister Kim continued follow-up discussions regarding the tariff agreement reached between Korea and the United States last July, meeting Secretary Lutnick at an undisclosed location in New York on the same day. With the follow-up talks at a standstill, attention is focused on whether this ministerial-level meeting will provide a breakthrough.

On July 30, Korea and the United States reached a tariff agreement in which the U.S. agreed to lower the reciprocal tariff on Korean products from 25% to 15%, while Korea committed to making a total investment of 350 billion dollars (approximately 486 trillion won) in the United States. This agreement was reaffirmed at the Korea-U.S. summit last month; however, detailed negotiations on specific points have yet to take place.

On the 8th, a joint working-level delegation from the Ministry of Trade, Industry and Energy and the Ministry of Economy and Finance held practical negotiations with officials from the U.S. Department of Commerce and the Office of the United States Trade Representative (USTR) to finalize the agreement, but the talks have faced difficulties. Subsequently, Minister Kim left for the United States on the 10th to directly lead follow-up negotiations on the tariff agreement.

Amid these developments, Secretary Lutnick appeared on CNBC on the 11th (local time), referencing Japan's signing of a tariff agreement with the U.S., and pressed Korea to accept the U.S. position, stating, "There is no flexibility. Korea must accept the agreement or pay the pre-reduction tariff rates."

He further elaborated on the U.S.-Japan agreement, stating that the Korea-U.S. agreement should be concluded under similar conditions. The U.S.-Japan agreement stipulates that profits are to be split 50-50 until the U.S. recoups the 550 billion dollars paid by Japan, after which the U.S. will take 90% of the profits.

Despite these remarks, the Office of the President reaffirmed the government's stance that negotiations will be conducted with the national interest as the top priority. The Office of the President emphasized, "As President Lee Jaemyung stated during his 100th day in office press conference, we will not engage in negotiations that lack rationality and fairness."

Separately from these negotiations, Minister Kim is also reported to have expressed concerns to the U.S. regarding the recent detention of Korean workers following immigration enforcement at the Hyundai Motor-LG Energy Solution plant in Georgia, and is expected to request improvements to visa procedures to ensure that Korean companies do not face difficulties in investing in the United States.

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