Washington: South Korea's Industry Minister Kim Jung-kwan and U.S. Commerce Secretary Howard Lutnick convened in Washington on Thursday to address unresolved issues regarding South Korea's $350 billion investment commitment under a trade agreement established in July. This meeting is part of ongoing efforts by South Korean officials to expedite the finalization of the trade deal's details.
According to Yonhap News Agency, the meeting included high-level South Korean officials such as Finance Minister Koo Yun-cheol, Presidential Chief of Staff for Policy Kim Yong-beom, and Trade Minister Yeo Han-koo. This gathering follows a prior meeting between the industry minister and Secretary Lutnick in New York on October 4. The July framework trade deal includes a commitment from Seoul to invest $350 billion in the U.S. in exchange for reduced tariffs on South Korean automobiles.
However, negotiations have stalled due to unresolved issues, such as funding the investment package. Earlier in the day, South Korean officials, including the industry minister and the presidential chief of staff, engaged in discussions with Russell Vought, director of the Office of Management and Budget (OMB), about potential bilateral shipbuilding cooperation.
The MASGA project, part of the trade deal, aims to revitalize the U.S. shipbuilding industry by constructing new shipyards, developing personnel, and reestablishing supply chains. Although the meeting did not address China's recent sanctions on South Korean shipbuilder Hanwha Ocean, it focused on actionable projects under the MASGA initiative.
Presidential Chief of Staff Kim emphasized the significance of the OMB in shipbuilding projects, despite its indirect role in trade negotiations. He expressed the desire to exchange views on shipbuilding cooperation with the U.S. Upon arriving in Washington, Kim highlighted the constructive atmosphere of the ongoing negotiations between Seoul and Washington.
Kim also reflected on recent remarks by U.S. Treasury Secretary Scott Bessent, who anticipated a negotiation outcome within 10 days. Kim interpreted this as a positive indication of potential U.S. concessions. However, he reaffirmed Seoul's commitment to its negotiation principles over hastily concluding an agreement.
The presence of key South Korean negotiators in Washington raises hopes for substantial progress before the anticipated summit between South Korean President Lee Jae Myung and U.S. President Donald Trump at the Asia-Pacific Economic Cooperation summit later this month in Korea.