Seoul: South Korean Trade Minister Yeo Han-koo is set to depart for the United States on Monday to hold follow-up negotiations on a trade deal that was initially stalled between the two countries in late July, Yeo’s office said. The visit marks a continuation of high-level discussions aimed at finalizing the specifics of the bilateral trade agreement.

According to Yonhap News Agency, the trip occurs just a day after Industry Minister Kim Jung-kwan returned to Seoul, following separate trade discussions with U.S. Commerce Secretary Howard Lutnick in Washington. Yeo is scheduled to meet with U.S. Trade Representative Jamieson Greer and other trade officials to address the details of the bilateral framework trade agreement reached on July 30. Under this agreement, Washington consented to reduce the reciprocal tariff rate for South Korea to 15 percent, down from the initially proposed 25 percent.

Additionally, the United States agreed to lower tariffs on Korean cars to 15 percent from the current 25 percent. Both nations are reportedly working to resolve differences regarding a US$350 billion investment package that Seoul promised in exchange for the tariff reductions. Discussions are ongoing about the financing methods and profit-sharing arrangements of this investment.

Seoul officials have indicated that the proposed investment would primarily consist of loans and credit guarantees, whereas the United States is reportedly advocating for the investment to be made in the form of direct investment. The outcome of these negotiations could have significant implications for the economic relationship between the two countries.