[2025 Audit] Minister Kim Jeong-Kag: "Korea and U.S. Divided Over Investment Amount... Upfront Payment Demands Largely Withdrawn"

"U.S. Shows Understanding of Burden on Korean Foreign Exchange Market"

Kim Jeong-Kag, Minister of Trade, Industry and Energy, is responding to lawmakers' questions at the National Assembly's Industry, Trade, Energy, Small and Medium Enterprises Committee hearing held in Yeouido, Seoul on October 24, 2025. Photo by Kim Hyunmin

Kim Jeong-Kag, Minister of Trade, Industry and Energy, stated regarding the Korea-U.S. tariff negotiations, "The core of this negotiation is the size of direct investment (cash), and both sides are strongly divided over what amount is appropriate."

At the National Assembly's Trade, Industry, Energy, Small and Medium Enterprises Committee audit on October 24, Minister Kim said, "From our perspective, the scale needs to be smaller than it is now, while the U.S. side insists it should be larger."

He added, "Although we have not set a specific deadline for concluding the negotiations, we will ensure that our position is upheld until the very end."

He presented three principles for this negotiation: ▲ ensuring the substantial interests of both countries ▲ the commercial viability of the project ▲ minimizing the impact on financial and foreign exchange markets. Minister Kim emphasized, "The exchange of investment and tariffs should not result in short-term political gains," adding, "Stability in the financial market and securing industrial competitiveness must be considered together."

When Heo Jongshik, a lawmaker from the Democratic Party of Korea, asked whether the U.S. demand for upfront investment was at a level acceptable to the public, Minister Kim replied, "The U.S. has largely withdrawn its demand for upfront investment, and there is a growing atmosphere of consideration for the burden on the foreign exchange market."

In response to a question about whether the agricultural sector was included in the negotiations, he clarified, "There was no such discussion during the consultation process with U.S. Secretary of Commerce Howard Lutnick." Minister Kim added, "The U.S. is not demanding a full cash investment, nor has it requested an increase in the investment amount," and assured, "We will conclude the negotiations at a level that balances national interests and market stability."

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