Industry Minister in US for Talks on Investments and Tariffs

▲ Minister of Trade, Industry and Energy Kim Jeong-kwan

As the U.S. government presses South Korea to fulfill its investment commitments in the United States, Minister of Trade, Industry and Energy Kim Jeong-kwan has traveled to the country to address the issues.

Minister Kim met with U.S. Commerce Secretary Howard Lutnick in Washington, D.C., yesterday (August 17) to discuss matters regarding investments in the U.S.

Kim departed for the U.S. on August 16 on short notice to negotiate key issues surrounding the first major U.S. investment project.

His return schedule has not been finalized, raising the possibility that he may continue additional discussions on-site with U.S. government officials, including Secretary Lutnick.

While the government has been coordinating details with the U.S. side on energy cooperation—such as reviewing the construction of a combined-cycle gas turbine power plant as the first U.S. investment project—the official first project has not yet been finalized.

Upon arriving in the U.S., Minister Kim told reporters, "As we reach the final stages, various and specific working-level issues are emerging. We have been holding video conferences and working-level contacts regarding these matters, and I came here because there was a need to comprehensively sort everything out."

Asked whether the first project could be announced around the end of this month, he said, "Please understand that I came here with the intention of doing whatever it takes to resolve things with that [late August announcement] as the goal."

Amid speculations that the U.S. had demanded investments related to memory semiconductors, the Ministry of Trade, Industry and Energy drew a line that day, stating, "It is not true that semiconductors are being discussed as a candidate for the first U.S. investment project."

Amid the vacancy left by former Trade Minister Yeo Han-koo, who was dismissed on August 15, Minister Kim is also expected to pursue a meeting with U.S. Trade Representative (USTR) Jamieson Greer during his visit.

South Korea previously agreed to lower U.S. reciprocal tariffs from 25% to 15% in exchange for $350 billion in investments in the United States last year.

However, following the USTR's imposition of a 12.5% forced labor-related tariff on South Korea last month under Section 301 of the U.S. Trade Act, concerns are rising that additional tariffs expected soon from an overproduction investigation could push the total past 15%.

The possibility that the U.S. might utilize tariff cards and other measures to heighten pressure cannot be ruled out.

Nevertheless, Minister Kim stated that both nations share a consensus on the 15% cap and that he has not received pressure from the U.S. threatening tariff hikes if investments in the U.S. are delayed.

(Photo: Yonhap News)

※