Ambassador Kang Kyung-wha: U.S. and South Korea Agree to Manage Coupang Issue Stably

▲ South Korean Ambassador to the U.S. Kang Kyung-wha speaks during a press conference with correspondents on July 8 (local time).

South Korean Ambassador to the U.S. Kang Kyung-wha stated on July 8 (local time) that there is a consensus between the two governments to manage the Coupang issue—a factor causing diplomatic and trade friction between South Korea and the U.S.—in a stable manner so that it does not become a burden on bilateral relations.

During a press conference with correspondents at the South Korean Embassy in Washington, D.C., Ambassador Kang said, "We will continue to clearly and consistently explain our government's position through ongoing consultations with the U.S. side regarding the Coupang issue."

This indicates that, separate from the recent report released by the U.S. House Judiciary Committee claiming that the South Korean government is discriminatorily targeting the U.S. company Coupang, the two governments share the view that the Coupang situation should not hinder bilateral cooperation.

However, it is reported that South Korean diplomatic officials found it quite unexpected that the White House issued a statement following the release of the Judiciary Committee report, expressing "deep concern over the situation where the South Korean government is discriminatorily targeting U.S. technology companies."

The South Korean government maintains that it does not discriminate against companies based on their nationality and that the Judiciary Committee report only reflects the claims made by Coupang.

Accordingly, it is understood that the government plans to collect the positions of the institutions mentioned in the report and deliver them to the Judiciary Committee.

Ambassador Kang noted that they are coordinating the schedule for the next round of consultations to implement the agreements made between the leaders of South Korea and the U.S. regarding nuclear energy and nuclear-powered submarines. She added, "We plan to pursue frequent contact with the U.S. through various channels to accelerate sector-specific consultations in the future."

South Korea and the U.S. held their first round of consultations in Seoul early last month, focusing on South Korea's introduction of nuclear-powered submarines and uranium enrichment.

It was reported that discussions on the shipbuilding sector did not take place at that time as the U.S. side required more preparation.

Regarding South Korea-U.S. shipbuilding cooperation, it is known that progress will be sought through the operation of a working group.

Regarding the Trump administration's Section 301 trade tariff investigation, Ambassador Kang stated, "We are emphasizing that a balance of interests between the two countries must be maintained in accordance with the existing South Korea-U.S. tariff agreement, and the U.S. side has also expressed its intention to comply with the agreement."

She further explained, "We will continue to closely monitor trends in new U.S. tariff measures and maintain close consultations at all levels to minimize any negative impact."

After the U.S. Supreme Court ruled the reciprocal tariff (country-specific tariffs) unconstitutional in February, the Trump administration began introducing "substitute tariffs" and launched Section 301 investigations through the Office of the United States Trade Representative (USTR) based on two grounds: "forced labor" and "overproduction."

In the investigation related to forced labor, a 12.5% tariff is expected to be imposed on South Korea, while the results of the investigation regarding overproduction are pending.

Regarding the prospects for the resumption of North Korea-U.S. dialogue, Ambassador Kang said, "Despite some expectations for a resumption following the U.S.-China summit, there has been no concrete progress." She added, "Our government is also paying close attention to whether North Korea will attend the ASEAN-related foreign ministers' meetings at the end of this month and what messages it might convey."

(Photo: Joint Press Corps, Yonhap News)

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