▲ Minister of Industry Kim Jeong-kwan answers questions from reporters upon arriving in the United States via Dulles International Airport near Washington, D.C., on the 16th (local time).
Minister of Industry Kim Jeong-kwan stated on the 16th (local time) that various final issues are emerging regarding the USD 200 billion US investment project agreed upon in South Korea-US tariff negotiations, making it necessary to sort them out.
Arriving in the US via Dulles International Airport near Washington, D.C., Minister Kim met with reporters at the airport regarding the purpose of his current visit, saying, "As I mentioned previously, we were thinking of announcing the project around late August or early September, but as we reach the final stage, various and specific working-level issues are coming up."
He continued, "We have held video conferences and working-level contacts regarding those parts, and I came because there is a need to organize everything comprehensively once."
Regarding whether the US investment project could be announced as early as late August, Minister Kim explained, "We are negotiating in detail with that goal in mind, but more diverse issues are arising than expected. Please understand that I came with the objective of somehow resolving them with [late August] as the target."
South Korea previously lowered its tariffs from 25% to 15% through a trade agreement with the US that included USD 350 billion in investment in the US last year.
Of the USD 350 billion, USD 150 billion has been allocated for shipbuilding cooperation, and both countries are currently discussing implementation plans for the remaining USD 200 billion investment.
When asked about reports that "the Trump administration has pressured the South Korean government by warning that tariffs would be raised if US investments are not expedited," Minister Kim replied, "I am not sure" and added, "I have never received such pressure."
He went on to say, "President Trump has also been talking about picking up the investment pace since early this year. Since a year has already passed, we likewise share the same intent on speeding things up, so we are continuing discussions."
Some express concern that if the US imposes an additional 12.5% tariff related to forced labor on South Korea under Section 301 of the Trade Act last month, followed by further tariffs based on the results of an overcapacity investigation, the tariff on South Korean products could exceed the 15% cap set in the South Korea-US trade agreement.
While the South Korean government maintains that a consensus exists between the trade authorities of both countries regarding the 15% ceiling, South Korea's progress in implementing US investments is being cited as a variable.
Regarding whether the 15% tariff cap will be maintained even after the announcement of the overcapacity investigation results, Minister Kim noted that US Commerce Secretary Howard Lutnick and USTR Trade Representative Jamieson Greer had previously stated during the forced labor tariff imposition process that they would uphold the spirit agreed upon by both countries, adding, "We plan to do our best without prejudging."
As for whether the US project could be announced before the release of the US overcapacity investigation results, Minister Kim said, "I am not sure," while noting, "When the US talked to us about overcapacity, they mentioned around late August, but it feels like it might take a bit longer than expected."
Asked if combined cycle power generation remains the strong favorite as the first US investment project, he stated, "Let's wait and see," and added, "We are looking at the current situation as originally discussed."
To the question of whether explaining the replacement of Trade Minister Yeo Han-koo to the Trump administration is part of the purpose of his US visit, he answered, "That is not the case," and stated, "It is not appropriate for me to directly explain matters that belong to the appointing authority."
Regarding concerns that Minister Yeo's replacement could create a vacuum in South Korea-US trade negotiations, Minister Kim remarked, "While Minister Yeo has handled many non-tariff areas and FTAs, he did not handle everything alone," adding that Trade Assistant Minister Park Jung-sung and others are scheduled to take over the duties.
He then emphasized, "Negotiations are not handled by an individual, but by the entire organization together," and affirmed, "We will do our best to ensure there is no vacuum."
This marks Minister Kim's visit to the US in three weeks, and he is expected to meet with Trump administration officials including Secretary Lutnick to discuss US investment projects and tariffs.
(Photo: Yonhap News)
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