Incheon: Trade Minister Yeo Han-koo stated on Friday that he emphasized the differences between South Korea and Japan during recent discussions with the United States, as both nations are engaged in negotiations to finalize the specifics of a bilateral trade agreement reached in late July. Yeo shared this information with reporters at Incheon International Airport upon his return from Washington, D.C., where he met with U.S. Trade Representative Jamieson Greer.
According to Yonhap News Agency, this meeting was the latest in a series of negotiations between Seoul and Washington. It followed another meeting that took place last week in New York between South Korean Industry Minister Kim Jung-kwan and U.S. Commerce Secretary Howard Lutnick. "I tried to explain as thoroughly as possible (to the U.S. side) that Japan and South Korea are different," Yeo told reporters.
The framework deal, reached on July 30, involves the U.S. lowering "reciprocal" tariffs on Korea and sectoral tariffs on Korean autos from 25 percent to 15 percent. In return, South Korea committed to investing US$350 billion in the United States and making other pledges. This agreement was affirmed by South Korean President Lee Jae Myung and former U.S. President Donald Trump during their White House summit on August 25. However, the two countries have yet to resolve how to fund Korea's $350 billion investment package and share the resulting profits.
In contrast, Japan had earlier concluded a similar agreement with the U.S., pledging $550 billion in investments. The Seoul government is reportedly seeking more favorable terms, including an unlimited currency swap arrangement, due to concerns about the potential strain on the foreign exchange market from injecting $350 billion in cash.
"We are doing our best to present objective data and analysis to persuade the U.S. that Japan and South Korea are fundamentally different in many respects," Yeo said. The recent reduction of U.S. tariffs on Japanese autos to 15 percent from 27.5 percent has intensified pressure on Korean negotiators, as it could disadvantage Korean auto exports in the U.S. market.
While the U.S. has agreed to lower tariffs on South Korean autos to 15 percent as part of the trade deal, the implementation remains uncertain amid ongoing negotiations over the details. Regarding auto tariffs, Yeo acknowledged the seriousness of the issue and conveyed that the government is working diligently to resolve it promptly.