Washington: Industry Minister Kim Jung-kwan left for the United States on Thursday to hold follow-up negotiations on the framework trade agreement reached between South Korea and the U.S. in late July, Kim's office said.
According to Yonhap News Agency, Kim is expected to meet with U.S. Commerce Secretary Howard Lutnick and other trade officials during his visit to discuss tariff issues and possible improvements to the visa system between the two countries. This comes in light of the recent detention of hundreds of South Korean nationals at a battery plant construction site in Georgia due to an immigration crackdown.
Seoul and Washington have been engaging in talks over the specifics of the bilateral trade deal struck on July 30. Under this agreement, the U.S. Trump administration consented to lower the reciprocal tariff for South Korea to 15 percent from the initially proposed 25 percent, and to reduce tariffs on Korean cars to 15 percent from the current 25 percent. In return, the Korean government committed to investing a combined US$350 billion in the U.S. for cooperation in sectors such as shipbuilding, semiconductors, batteries, and other advanced industries.
Following the framework agreement, the Trump administration has reduced reciprocal tariffs for Korea but has yet to adjust auto tariffs. Earlier this week, Seoul's working-level trade delegation engaged in discussions with U.S. officials in Washington to outline specifics of Korea's investment plans in the U.S., focusing on how to implement these projects and share profits from the investment schemes.
Seoul officials have indicated that the planned investment will primarily involve loans and credit guarantees, while the U.S. is reportedly insisting on direct investment. The two sides are also working to reconcile differences regarding non-tariff trade barrier issues in the agriculture and digital sectors. This includes Seoul's proposed regulations on online platforms, restrictions on exporting high-precision map data, and an import ban on U.S. beef from cattle aged 30 months or older.
In addition, Kim is anticipated to address the detainment of over 300 Koreans at the battery plant, operated by a joint venture between Hyundai Motor Group and LG Energy Solution Ltd. in Bryan County, advocating for measures to ensure that Koreans traveling to the U.S. for investment projects can obtain the proper visa.