Seoul: South Korea will continue its follow-up negotiations with the United States on the details of a bilateral trade agreement signed in late July, the country's trade minister said Monday, highlighting the need to minimize the impact of U.S. tariffs on Korean companies.
According to Yonhap News Agency, Trade Minister Yeo Han-koo emphasized that the government will engage in close discussions with the U.S. to reduce the tariffs' impact on Korean businesses and protect national interests. These negotiations are taking place in the context of the recent U.S.-Japan trade agreement.
The announcement follows the detention of over 300 South Koreans by U.S. immigration officials during a raid at a Hyundai Motor Group and LG Energy Solution construction site in Georgia. Additionally, U.S. President Donald Trump recently signed an executive order implementing a bilateral trade deal with Japan, which decreased U.S. tariffs on Japanese cars to 15 percent.
The trade agreement between Seoul and the Trump administration, reached on July 30, includes a provision to lower auto tariffs for Korea from the current 25 percent to 15 percent. However, formalization of the deal is still pending as both sides work on finalizing the specifics.
Seoul and Washington are reportedly negotiating the terms of a proposed US$350 billion investment package by South Korea, offered in return for the tariff reductions. The Korean government plans to invest $150 billion in shipbuilding cooperation with the U.S. and an additional $200 billion to enhance collaboration in advanced industries like semiconductors and batteries.
South Korean officials have indicated that the planned investment will primarily consist of loans and guarantees, while the U.S. is reportedly seeking more direct investment.