First State Visit in 12 Years... Yoon, What Gift Packages Will He Bring?

President Yoon Suk-yeol is on a state visit to the United States, the first by a South Korean president in 12 years, drawing attention to the security and economic cooperation packages that the two countries will exchange.

First, the so-called "Korean-style nuclear sharing" is cited as a key agenda item for the South Korea-U.S. summit. As North Korea's nuclear threats have intensified recently, voices have emerged calling for an extended deterrence at the level of a NATO-style nuclear sharing system or tactical nuclear redeployment in South Korea. "NATO-style nuclear sharing" refers to a structure in which tactical nuclear weapons deployed at six U.S. military bases in five European countries are operated through consultations among the defense ministers of NATO's 27 member countries (excluding France) via the Nuclear Planning Group (NPG).

President Yoon also mentioned in a recent foreign media interview that a stronger response than NATO's should be prepared. In the interview, President Yoon said, "Since both South Korea and Japan are exposed to North Korea's nuclear threats, trilateral cooperation among South Korea, the U.S., and Japan is necessary," adding, "I think a stronger response than NATO's should be prepared in terms of a robust nuclear attack response."

President Yoon Suk-yeol and First Lady Kim Keon-hee, who are on a state visit to the United States, arrived at Andrews Air Force Base near Washington DC on the afternoon of the 24th (local time). They are seen waving their hands in greeting as they disembark from Air Force One. Photo by Yonhap News

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The two leaders are reportedly discussing ways to explicitly codify practical measures to strengthen extended deterrence in a special document. Specifically, it would state that if South Korean territory is attacked with nuclear weapons by North Korea or others, the U.S. would respond with nuclear retaliation.

Hong Hyun-ik, former president of the Korea National Diplomatic Academy, also emphasized on the 25th on YTN Radio's "News King with Park Ji-hoon" that "Above all, given the severity of North Korea's nuclear threat, a reliable extended deterrence and constant assurance are necessary."

Regarding the "codification of nuclear retaliation," former President Hong said that measures supporting such codification are needed. He explained, "The war powers of the U.S. are held by Congress, not the president," adding, "Codification is not a treaty. If it were a treaty, it would have binding force after Senate ratification, but with just an agreement, it raises questions about whether the U.S. would retaliate in the event of a North Korean nuclear attack and whether it can be trusted."

He continued, "There should be a situation where U.S. nuclear strategic assets are deployed cyclically almost 365 days a year in international waters near the Korean Peninsula," adding, "While ground redeployment is difficult, rotational redeployment at sea, such as submarines, should be visible in action so that we can always show that we are prepared for nuclear retaliation near the Korean Peninsula, even if it is unclear whether they have arrived or not."

There are also numerous economic issues to be resolved with the U.S. Previously, the U.S. has been pursuing policies of economic nationalism such as the CHIPS and Science Act (CSA) and the Inflation Reduction Act (IRA), and reducing the damage to domestic companies caused by these policies is an immediate task.

The U.S. is implementing the CSA, which provides a total of $52.7 billion (approximately 69.5 trillion KRW) in subsidies over five years to encourage domestic investment amid ongoing U.S.-China conflicts over semiconductors. The problem lies in the stringent subsidy requirements. The U.S. demands confidential information disclosure, excess profit clawbacks, and China investment restriction guardrails from applicant companies, putting Korean companies in a difficult position as accepting subsidies could lead to the disclosure of trade secrets.

President Yoon Suk-yeol of South Korea and his wife Kim Keon-hee, who are on a state visit to the United States, are applauding as they listen to a welcome speech by Yumi Hogan, wife of former Maryland Governor, at a dinner meeting for the Korean community held at a hotel in Washington DC on the 24th (local time). Photo by Yonhap News Agency

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The issue of subsidy exclusion under the IRA is also a major concern. The IRA is a law that ultimately provides subsidies in the form of tax credits for electric vehicles assembled in North America.

However, due to strict criteria, all Hyundai and Kia vehicles were excluded from the 16 electric vehicle models (22 including sub-models) recently announced by the U.S. government as eligible for subsidies. South Korea depends on China for minerals used in battery materials, so securing a grace period until alternative sources are found or implementing flexible application of detailed regulations is necessary.

However, it is difficult to amend the law by requesting the U.S. administration. Professor Min Jeong-hoon of the Americas Research Department at the Korea National Diplomatic Academy said on the 25th on CBS Radio's "Kim Hyun-jung's News Show," "This involves the interests of the U.S. Democratic Party, Republican Party, and voters. Therefore, it will be difficult to change the overall direction of providing benefits to products produced in the U.S. through executive orders," diagnosing that minimizing damage to Korean companies through executive orders is the most realistic approach.

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