Seoul: South Korea and the United States are engaged in ongoing trade negotiations to reach a mutually beneficial agreement, as confirmed by Seoul's Industry Minister Kim Jung-kwan. The negotiations, which follow a framework agreement reached in late July, have encountered challenges but continue with the aim of finding a win-win solution.
According to Yonhap News Agency, Minister Kim highlighted that the negotiations are currently in a "back-and-forth" stage. He emphasized the importance of patience as both countries work through differences, particularly regarding South Korea's investment pledge of US$350 billion in the U.S. in exchange for reduced tariffs. The U.S. is set to lower its tariffs on South Korean products, including a reduction on Korean cars from 25 percent to 15 percent.
Concerns have been raised over the nature of South Korea's investment, with the U.S. pushing for direct investments rather than loans and credit guarantees. Minister Kim assured that the investment projects would benefit Korean companies and addressed opinions suggesting that South Korea should face a higher tariff instead of signing an "unfair" agreement. He stressed the crucial nature of Seoul's relationship with Washington for Korea's future.
In response to recent immigration issues, Kim mentioned a promise from U.S. Commerce Secretary Howard Lutnick to address concerns related to Korean investments in the U.S. This follows a controversial immigration raid at a battery plant in Georgia, resulting in the detainment of over 300 Korean nationals. The affected individuals have since returned to Korea.
On the domestic front, Minister Kim reiterated the importance of advancing plans to build new nuclear power plants to meet future energy demands. This comes amid debates within the government regarding energy policy management and a possible public review of nuclear projects.
Furthermore, Kim addressed an investigation into a dispute settlement deal between Korea Hydro and Nuclear Power Co. and U.S. firm Westinghouse, which could impact KHNP's ability to bid on international projects.
Kim also highlighted the government's focus on fostering AI transformation in Korea's manufacturing industries, with plans to develop AI-powered technologies and establish 500 AI factories by 2030. This AI transformation is seen as pivotal for the future success of Korea's key industries.