Washington: Top South Korean officials conducted talks with a senior White House official on Thursday concerning bilateral shipbuilding cooperation, a significant element of Seoul's $350 billion investment commitment under a trade deal established in July, Industry Minister Kim Jung-kwan announced. He, along with Kim Yong-beom, the presidential chief of staff for policy, engaged with Russell Vought, director of the Office of Management and Budget (OMB), as both Seoul and Washington work towards resolving differences over the implementation of Korea's investment package.
According to Yonhap News Agency, the two officials arrived in Washington earlier in the day as part of Seoul's efforts to accelerate negotiations to finalize the trade deal's specifics, with high-ranking officials, including Finance Minister Koo Yun-cheol, visiting Washington this week. "We had constructive talks on various matters with respect to the MASGA project," Minister Kim stated, referring to the "Make American Shipbuilding Industry Great Again" initiative, which aims to revitalize the U.S. shipbuilding industry as a component of the trade agreement.
The MASGA project involves the construction of new shipyards in the U.S., the development of shipbuilding personnel, the reestablishment of supply chains, and collaboration on maintenance, repair, and overhaul (MRO) initiatives. This project played a pivotal role in reaching the July trade deal. While the meeting did not address China's recent sanctions on five U.S. units of South Korean shipbuilder Hanwha Ocean, discussions focused on potential projects under the MASGA initiative.
Presidential Chief of Staff Kim emphasized the significance of visiting the OMB, describing it as a "very crucial" entity for shipbuilding projects, despite its indirect involvement in trade negotiations. "We want to listen to what it has to say and share each other's view on shipbuilding industrial cooperation between our country and the U.S.," he remarked before entering the White House.
Upon arriving near Washington, the presidential aide conveyed that trade negotiations between Seoul and Washington are progressing in the "most earnest and constructive" manner to date. Speculation suggests that the two countries are nearing an agreement to finalize the trade deal's details. "We are at a juncture when the two countries are engaging in negotiations in the most earnest and constructive atmosphere," Kim noted upon arrival at Dulles International Airport.
In response to U.S. Treasury Secretary Scott Bessent's recent comments expressing an expectation for a negotiation outcome within the next 10 days, the presidential official interpreted this as a positive indication. "When the U.S. expects a result within 10 days, that apparently represents its interim assessment of the negotiations with us, and I read it as a sign that is not bad," he said. Kim reiterated Seoul's commitment to adhering to its negotiation principles rather than hastening to close a deal.
During his visit to Washington, Industry Minister Kim is anticipated to meet with Commerce Secretary Howard Lutnick, while Finance Minister Koo is likely to engage with Bessent. The convergence of Seoul's key officials in Washington fosters optimism that substantial progress can be achieved ahead of a potential summit between South Korean President Lee Jae Myung and U.S. President Donald Trump during the Asia-Pacific Economic Cooperation summit, scheduled to begin later this month in Korea.
The framework trade deal reached in late July requires Seoul to invest $350 billion in the U.S., among other commitments, in exchange for Washington's agreement to reduce its "reciprocal" tariff and sector-specific duty on South Korean autos to 15 percent from 25 percent. However, the deal remains unimplemented as negotiations continue to address differences over critical issues, including the funding of the investment package.