Seoul: The South Korean government is committed to achieving a "reasonable" and "fair" tariff agreement with the United States, as stated by the industry minister. The minister emphasized the government's dedication to protecting Korea's economy in the face of increasing global trade uncertainties.
According to Yonhap News Agency, Industry Minister Kim Jung-kwan announced during the annual parliamentary audit of government organizations that discussions with Washington are ongoing to resolve differences regarding Korea's investment package in the U.S. Kim assured that Korea will prioritize its national interests while striving for a fair agreement with the U.S.
The minister highlighted the potential for Korea's strategic industries to expand their presence in the U.S., following a framework trade deal established in late July. The two nations are negotiating the financing of Korea's planned $350 billion investment in the U.S. and how profits will be shared.
Kim noted the challenges posed by U.S.-led trade protectionism and China's control over critical minerals, which exacerbate Korea's vulnerability due to its export dependence on specific countries. He emphasized the importance of concluding negotiations with the U.S. and enhancing strategic cooperation with the U.S., China, and Japan, while also seeking to diversify partnerships with nations in the Global South.
Addressing foreign media reports, Kim clarified that the Trump administration has not requested a larger investment from Seoul. The initial $350 billion investment package focused more on loans and guarantees than direct investment, but the details have evolved during negotiations. Consequently, Seoul has sought a currency swap with Washington to stabilize Korea's foreign exchange market amid the substantial U.S. investment.
To revitalize the economy, Kim outlined plans to integrate artificial intelligence (AI) technologies into manufacturing, aiming for a 30 percent productivity increase by establishing over 500 AI factories by 2030. The government also intends to promote renewable energy use and create industrial complexes powered entirely by clean energy starting next year, as announced by the industry ministry.