Washington: South Korea's Trade Minister Yeo Han-koo held discussions with U.S. Trade Representative Jamieson Greer in Washington, as both nations continue negotiations to finalize the specifics of a bilateral trade deal established in late July.
According to Yonhap News Agency, this meeting marks the latest round of talks between the U.S. and South Korea, following previous discussions between Korea's Industry Minister Kim Jong-kwan and U.S. Commerce Secretary Howard Lutnick in New York. The initial framework deal, reached on July 30, involves the U.S. reducing tariffs on Korean autos to 15 percent from 25 percent, while Korea commits to a $350 billion investment in the United States. However, the two parties are yet to agree on the funding methods for Korea's investment package and the division of profits.
South Korean President Lee Jae Myung and U.S. President Donald Trump confirmed the deal during their White House meeting on August 25. Despite this, Seoul remains cautious, with officials indicating that they will not rush into a trade deal that could compromise Korean companies' interests. The Trump administration prefers direct equity investments from Korea, seeking 90 percent of the profits after Korea recovers its $350 billion investment, whereas Seoul plans to use loans and loan guarantees.
The recent reduction of U.S. tariffs on Japanese autos to 15 percent has intensified pressure on Korean negotiators, as it could disadvantage Korean auto exports in the U.S. market. Although the U.S. agreed to lower tariffs on South Korean autos as well, the implementation of the agreement remains uncertain as negotiations continue.
During his visit to Washington, Yeo engaged with other U.S. officials to garner support for South Korea's stance in the ongoing trade talks.