Washington: South Korea’s Finance Minister Koo Yun-cheol committed to putting forth his utmost effort to finalize a trade agreement with the United States during discussions with U.S. Commerce Secretary Howard Lutnick in Washington. These talks, marking their second day, come at a critical juncture with a looming negotiation deadline this week.
According to Yonhap News Agency, South Korea is eager to secure a deal with President Donald Trump’s administration before the Friday deadline, when “reciprocal” tariffs, which include 25 percent duties on Korean goods, are scheduled to go into effect unless an agreement is reached. Koo, also serving as Deputy Prime Minister for Economic Affairs, emphasized his dedication to these negotiations as he arrived at the Commerce Department building.
Joining Koo at the negotiation table were Korea’s Industry Minister Kim Jung-kwan and Trade Minister Yeo Han-koo. However, it remains unclear whether U.S. Trade Representative Jamieson Greer participated in the discussions. The Wall Street Journal noted that Lutnick had urged Korean delegates to present their “best and final” trade proposal during the negotiations.
Koo’s presence coincided with an upcoming “two-plus-two” meeting involving Yeo, Treasury Secretary Scott Bessent, and Greer. In these ongoing discussions, South Korea aims to either avoid or reduce the proposed 25 percent reciprocal tariffs and sector-specific duties on steel and automobiles, given concerns about the potential impact on its export-dependent economy.
In an attempt to reach a breakthrough, Seoul has introduced a large-scale investment plan known as the “Make American Shipbuilding Great Again (MASGA)” initiative. This proposal aligns with the Trump administration’s goal to revitalize America’s shipbuilding sector in response to China’s shipbuilding dominance.
South Korea’s Foreign Minister Cho Hyun is scheduled to visit Washington to engage in talks with Secretary of State Marco Rubio on Thursday. This visit underscores the Seoul government’s comprehensive efforts to secure a trade deal with the U.S.
The Trump administration is reportedly seeking significant Korean investments in the U.S., prompting Korean business leaders, including Samsung Electronics Co. Chairman Lee Jae-yong, to visit Washington in support of the negotiations. Hanwha Group Vice Chairman Kim Dong-kwan arrived earlier this week, with Hyundai Motor Group Executive Chair Euisun Chung also planning a visit.
Should the MASGA proposal gain acceptance, Hanwha is anticipated to play a pivotal role, given its acquisition of Philly Shipyard in Philadelphia last year, marking a notable entry into the U.S. shipbuilding industry by a Korean firm. Speculation is rife that Lee might propose expanding Samsung’s semiconductor investments in the U.S. Meanwhile, Hyundai has already announced an ambitious plan to invest US$21 billion in the U.S. by 2028.